Question: Mina's Custom Bakery is evaluating a new 6-year project that will have annual sales of $451,500 and costs of $323,300. The project will require fixed
Mina's Custom Bakery is evaluating a new 6-year project that will have annual sales of $451,500 and costs of $323,300. The project will require fixed assets of $540,500, which will be depreciated on a 5 -year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, 11.52 percent, and 5.76 percent, respectively. The company has a tax rate of 21 percent. What is the operating cash flow for Year 2? OCF for Year 2=
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