Question: ABC. is considering a new five-year expansion project that requires an initial fixed asset investment of $7 million. The equipment is a five-year property for

 ABC. is considering a new five-year expansion project that requires an

ABC. is considering a new five-year expansion project that requires an initial fixed asset investment of $7 million. The equipment is a five-year property for MACRS, it will be worthless at the end of the project life. The project is estimated to generate $4,389,000 in annual sales, with costs of $1,731,200. The tax rate is 24 percent. What is the Year 5 operating cash flow for this project? (The MACRS rates are 0.2, 0.32, 0.19, 0.12, 0.11, and 0.06 for years 1 to 6, respectively.) $2,557,528.00 O$2,339,128.00 $2,221,528.00 $2,204,728.00

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