Question: 11-6. (Calculating operating cash flows) Assume that a new project will annually generate revenues of $2 million. Cash expenses including both fixed and variable costs

11-6. (Calculating operating cash flows) Assume that a new project will annually generate revenues of $2 million. Cash expenses including both fixed and variable costs will be $800,000, and depreciation will increase by $200,000 per year. In addition, lets assume that the firms marginal tax rate is 34 percent. Calculate the operating cash flows.

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