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A project with a life of 9 years is expected to provide annual sales of...

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Finance

A project with a life of 9 years is expected to provide annual sales of $450,000 and costs of $325,000. The project will require an investment in equipment of $775,000, which will be depreciated on a straight-line method over the life of the project. You feel that both sales and costs are accurate to +/-10 percent. The tax rate is 40 percent. What is the annual operating cash flow for the best-case scenario?

Multiple Choice

  • $155,944

  • $115,444

  • $121,500

  • $62,944

  • $135,694

Answer & Explanation Solved by verified expert
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