Question: 1 . Red circle health is evaluating Project B . In years 4 of the project, the tax rate is expected to be 1 5

1. Red circle health is evaluating Project B. In years 4 of the project, the tax rate is expected to be 15 percent and the project is expected to have relevant revenue of $359000, relevant fixed cost of $139000, relevant variable cost of $64000, and relevant depreciation of $114000.In additional, because Red Circle Health would need to borrow funds to buy the equipment need for project B, the firm would be required to make an interest payment of $25000 in 4 years. What is the operating cash flow for year 4 that Red Circle Health should used in its NPV analysis of project B?

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