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Question
Wright's Warehouse has the following projections for Year 1 of a capital budgeting project.Year 1 Incremental Projections:
| Sales | $200,000 |
| Variable Costs | $120,000 |
| Fixed Costs | $40,000 |
| Depreciation Expense | $20,000 |
| Tax Rate | 40% |
Calculate the operating cash flow for Year 1.
A) $12,000
B) $32,000
C) $52,000
D) $72,000
Answer
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