Question: Killibrew Enterprises is considering a new project that is expected to generate added revenues $1,250,000 and incur added cash expenses (including both fixed and variable

Killibrew Enterprises is considering a new project that is expected to generate added revenues $1,250,000 and incur added cash expenses (including both fixed and variable costs) of $650,000, while increasing depreciation by $200,000 per year. If the firm's tax rate is 34 percent, calculate the annual operating cash flows for the new project.

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