Question: A project is expected to decrease a firms cash expenses by $150,000 annually and increase its depreciation by $80,000 annually. The project has an expected

A project is expected to decrease a firms cash expenses by $150,000 annually and increase its depreciation by $80,000 annually. The project has an expected economic life of 8 years. What is the net cash flow each year? Use 40 percent for the effective tax rate. Assume there is no working capital to be liquidated at the end of 8 years, and there is also no salvage value at the end of 8 years.

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