Question: Ernies Electrical is evaluating a project that will increase sales by $100,000 and costs by $70,000. The investment will cost $250,000 and be depreciated straight-line

Ernies Electrical is evaluating a project that will increase sales by $100,000 and costs by $70,000. The investment will cost $250,000 and be depreciated straight-line to a zero-book value over the 10-year life of the project. The applicable tax rate is 34%. What is the operating cash flow for this project?

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