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What is the operating cash flow for year 4 of project A that Platinum Water...

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Finance

What is the operating cash flow for year 4 of project A that Platinum Water Banking should use in its NPV analysis of the project? The tax rate is 10 percent. During year 4, project A is expected to have relevant revenue of 76,000 dollars, relevant variable costs of 25,000 dollars, and relevant depreciation of 11,000 dollars. In addition, Platinum Water Banking would have one source of fixed costs associated with the project A. Yesterday, Platinum Water Banking signed a deal with Jabari Advertising to develop a marketing campaign. The terms of the deal require Platinum Water Banking to pay Jabari Advertising either 26,000 dollars in 4 years if project A is pursued or 12,000 dollars in 4 years if project A is not pursued. Finally, the equipment purchased for the project would be sold in 4 years for an expected after-tax cash flow of 12,000 dollars.

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