What is the project after-tax operating cash flows

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Problem 1: A new capital budgeting project is being considered. The project will reduce expenses increase earnings by $5,000 annually and (revenue) before depreciation and taxes by $45,504 annually. The project will generate $8,000 per year in depreciation of the required equipment. The firm's marginal tax rate is 40 percent. What is the project's after-tax operating cash flows (OCF)?

Reference no: EM132965305

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