What is the expected cash flow for year one

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Question - An investment in new equipment will cost $35,000 and save the company $15,000 in reduced operating expense per year for 3 years. The project's. If the depreciation on the new investment is $6,600 the first year and the company's tax rate is 35%, what is the expected cash flow for year one?

A. $6,800

B. $12,060

C. $12,144

D. $16,667

Reference no: EM132991208

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