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Question
VR Corporation has the opportunity to invest in a new project, the details of which are shown below. What is the Year 1 cash flow for the project?Sales revenues, each year $42,500
Depreciation $10,000
Other operating costs $17,000
Interest expense $4,000
Tax rate 35.0%
a. $16,351
b. $17,212
c. $18,118
d. $19,071
e. $20,075
Answer
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