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Question
A proposed expansion project is expected to increase sales by $74,300 and increase cash expenses by $46,900. The project will require $52,800 of fixed assets that will be depreciated using straight-line depreciation to a zero book value over the five-year life of the project. The store has a marginal tax rate of 23 percent. What is the operating cash flow of the project using the tax shield approach? Ignore bonus depreciation.
A) $11,114.40
B) $17,916.60
C) $23,526.80
D) $22,800.10
E) $14,098.20
Answer
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Related questions
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Q:
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Q:
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B) has an unlimited partnership life.
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Q:
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Q:
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B) Should customers be given 30 or 45 days to pay for their credit purchases?
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Q:
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B) whether or not to purchase a new machine for the production line.
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Q:
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A) issue date.
B) offer date.
C) declaration date.
D) holder-of-record date.
E) ex-rights date.