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Taylor Inc. is considering a new project whose data for the first year of operations are...

Taylor Inc. is considering a new project whose data for the first year of operations are shown below. In conducting the capital investment analysis of this project, what would be the project’s Year 1 cash flow?

Sales revenues, each year

$77,450

Depreciation

$9,562

Other operating costs

$24,499

Interest expense

$8,710

Tax rate

28%

Solutions

Expert Solution

Sales revenue $77,450
Less: Depreciation $9,562
Less: Other operating costs $24,499
Cash flow before tax $43,389
Less: Tax @ 28% $12,149
Add: Depreciation $9,562
Cash flow after tax $40,802

jeff jeffy answered 3 years ago
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