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How do calculate the year one operating cash flow

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Reference no: EM132754706

Problem 1: You have been given the following information for a project you are evaluating. Revenues are expected to be $1.8 million per year. Operating costs are expected to be 75% of revenues and fixed costs are expected to be $150,000 per year. Depreciation in year one is expected to be 10%. Tax rate is 25%. Calculate the year 1 operating cash flow.

Reference no: EM132754706

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