Calculate the operating cash flow

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Scholastic Co. is evaluating different equipment. Machine A has an initial cost of $225,000 and has a five-year life, and costs $55,000 per year to operate. The machine will be depreciated using straight-line and the relevant discount rate is 8%. The machine will have a salvage value of $0 at the end of the project's life. The firm has a tax rate of 21%. Calculate the operating cash flow in year 1. (Enter a negative value)

Reference no: EM133074068

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