What is the first year operating cash flow of the project

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Reference no: EM132025698

CSY Inc.'s new 4-year project will increase its sales by $90,000 and cash expenses by $46,000 per year. The project's asset will cost $120,000 and be depreciated using 3-year MACRS over the life of the project. The company has a marginal tax rate of 35%. What is the first year's operating cash flow of the project (year 1 only), using the depreciation tax shield approach?

Reference no: EM132025698

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