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What is the annual operating cash flow

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Question - A project will increase annual sales by $60,000 and annual cash expenses by $51,000. The project will cost $40,000 and will be depreciated using straight-line depreciation to a zero book value over the 4-year life of the project. Ignore bonus depreciation. The company has a marginal tax rate of 23 percent. What is the annual operating cash flow using the tax shield approach?

Reference no: EM133114943

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