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Business, 22.04.2020 04:02 quigley523

Taylor United is considering overhauling its equipment to meet increased demand for its product. The cost of equipment overhaul is $4.02 million, plus $214,086.00 in installation costs. The firm will straight-line depreciate the equipment to zero using a 5-year recovery period. Additional sales from the overhaul should amount to $239,013.00 per year, and additional operating expenses and other costs (excluding depreciation) will amount to 39.00% of the additional sales. The firm has an ordinary tax rate of 37.00%. What is the operating cash flow for year 1 of this project?

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