Bettys Boutique is considering a project with projected sales of $46,000. Costs are estimated at $29,500. The
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Betty’s Boutique is considering a project with projected sales of $46,000. Costs are estimated at $29,500. The project will require $20,000 initially for the purchase of new equipment. This equipment will be depreciated using straight line to a zero book value over four years. The equipment will be worthless at the end of the four years. The tax rate is 35%. What is the amount of the projected operating cash flow in year 1 for this project?
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