Review problem on the purchase of new equipment

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Question: ABC, Inc. is considering the purchase of new equipment. The annual sales are expected to be $517,718, the annual variable costs are expected to be $136,989, the annual fixed costs are expected to be $57,541, the annual depreciation expenses are expected to be $62,049. Assuming a tax rate of 32.4%, what is the operating cash flow?

Round off to two decimal points.

Reference no: EM131931566

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