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Mater Pasta: forecast operating cash flows

Mater Pasta, Inc., has projected sales volume of $1,432 for the second year of a proposed expansion project. Costs normally run 70% of sales or about $1,002 in this case. The depreciation expense will be $80, and the tax rate is 34%.

a) What is the net cash flow (operating cash flow)?

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Mater Pasta, Inc., has projected sales volume of $1,432 for the second year of a proposed expansion project. Costs normally run 70% of sales ...

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This solution is comprised of a detailed explanation to answer what is the net cash flow (operating cash flow).

$2.19