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What is the annual operation cash flow for the project

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Point 1: Ernie' Electrical is evaluation a project which will increase annual sales by $50000 and cost by $30000. The project has an initial asset cost of $150000 that will be depreciated straight-line to zero book value over the 10 year life of the project. Ignore bonus depreciation. The applicable tax rate is 25%.

Question 1: What is the annual operation cash flow for this project?

Reference no: EM132483966

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