Question: (Calculating operating cash flows) Assume that a new project will annually generate revenues of $2,200,000. Cash expenses including both fixed and variable costs will be

(Calculating

operating cash

flows)

Assume that a new project will annually generate revenues of

$2,200,000.

Cash expenses including both fixed and variable costs will be

$900,000,

and depreciation will increase by

$300,000

per year. In addition, let's assume that the firm's marginal tax rate is

32

percent. Calculate the operating cash flows.

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