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    New Project's Operating Cash Flow

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    You work for a company which is considering a new project whose data are shown below.

    What is the project's operating cash flow for Year 1?

    Sales revenues, each year = $35,000
    Depreciation= $10,000
    Other operating costs= $17,000 (excluding depreciation)
    Interest expense= $4,000
    Common stock dividends= $2,000
    Tax Rate= 35%

    a) $5,200
    b) $10,700
    c) $12,380
    d) $12,600
    e) $13,718
    f) $14,440
    g) $15,200.

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    Solution Summary

    The solution computes new project's operating cash flow in a given scenario.