Calculate the expected operating cash flow

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A taco stand owner thinks her revenue will be $110,000 a year for 2 years. She thinks her annual expenses for the next 2 years will be as follows: variable costs of $40,000; labor costs of $30,000; rent of $10,000; and equipment depreciation of $10,000. Her tax rate is 35%. Calculate the expected Operating Cash Flow [OCF] for the first year.

Reference no: EM13260507

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