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Question: A company is considering a 5-year project to open a new product line. A new machine with an installed cost of $60,000 would be required to manufacture their new product, which is estimated to produce sales of $120,000 in new revenues each year. The cost of goods sold to produce these sales (not including depreciation) is estimated at 54% of sales, and the tax rate at this firm is 30%. If straight-line depreciation is used to calculate annual depreciation, what is the estimated annual operating cash flow from this project each year?

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Category:- Basic Finance
Reference No.:- M92795667

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