Question: A company is evaluating a project which will increase annual sales by $70,000 and annual costs by $40,000. The project will initially require $100,000 in

A company is evaluating a project which will increase annual sales

A company is evaluating a project which will increase annual sales by $70,000 and annual costs by $40,000. The project will initially require $100,000 in fixed assets which will be depreciated straight-line to a zero book value over the 5-year life of the project. The applicable tax rate is 34%. What is the project cash flow in year 1? $30,000 $46,400 $46,600 $26,600 $26,400

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