What is the operating cash flow on the tax shield

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Reference no: EM13826180

A project will reduce costs by $34,000 but increase depreciation by $16,500. What is the operating cash flow of this project based on the tax shield approach if the tax rate is 40 percent?

$5,775

$9,275

$15,625

$20,400

$27,000

Reference no: EM13826180

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