What is the net cash flow year

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A project is expected to increase a firm's sales revenues by $100,000 annually, increase its cash expenses by $4,500 annually, and increase its depreciation by $30,000 annually. The project has an expected economic life of 7 years. What is the net cash flow each year? Use 40 percent for the effective tax rate. Assume there is no working capital to be liquidated at the end of 7 years, and there is also no salvage value at the end of 7 years.

Reference no: EM132703606

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