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The Stanley Corp expects to have sales of $12 million. Costs other than depreciation are expected to be 60% of sales and depreciation is expected to be $2.4 million. All sales revenues will be collected in cash and costs other then depreciation and amortization must be paid for during the years. Stanley's federal plus state tax rate is 40%. Stanley has no debt.

What is Stanley's expected net cash flow?

 

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