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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.

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