Question: Club Corp is evaluating a project that would require an initial investment in equipment of $ 2 8 0 , 0 0 0 that is
Club Corp is evaluating a project that would require an initial investment in equipment of $ that is expected to last for years. MACRS depreciation would be used where the depreciation rates in years and are and respectively. For each year of the project, Club Corp expects relevant annual revenue associated with the project to be $ and relevant annual costs associated with the project to be $ The tax rate is percent. What is X plus Y if X is the relevant operating cash flow OCF associated with the project expected in year of the project and Y is the relevant OCF associated with the project expected in year of the project?
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