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A proposed project has an installed cost of $647,000. The device will be used in a...

A proposed project has an installed cost of $647,000. The device will be used in a fiveyear project so will be depreciated to an estimated salvage value of $70,000 over the five years. The marginal tax rate is 35% and the project opportunity cost of capital is 12 percent

What level of operating cash flow is required to make this project of value?

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Answer #1

Hence, Operating cash flows are $168,465.42

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