Investment project that will reduce expenses

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Reference no: EM131566037

The Wet Corp. has an investment project that will reduce expenses by $20,000 per year for 3 years. The project's cost is $40,000. If the asset is part of the 3-year MACRS category (33.33% first year depreciation) and the company's tax rate is 38%, what is the cash flow from the project in year 1?

Reference no: EM131566037

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