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    Wet corp.

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    The Wet corp. has an investment project that will reduce expenses by $15,000 per year for 3 years. The projects cost is $20,000. If the asset is part of the 3-year MACRS category (33% first year depreciation) and the company's tax rate is 34%, What is the cash flow in year 1?

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    https://brainmass.com/business/cash/cash-flow-year-202779

    Solution Preview

    The Wet Corp. has an investment project that will reduce expenses by $15,000 per year for 3 years. The project cost is $20,000.
    If the asset is part of the 3-year MACRS category (33% ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer what is the cash flow in year 1.

    $2.19

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