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What are the effects on cash flow

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A project currently generates sales of $9 million, variable costs equal 40% of sales, and fixed costs are $1.8 million. The firm's tax rate is 30%. Assume all sales and expenses are cash items.

a. What are the effects on cash flow, if sales increase from $9 million to $9.9 million? (Input the amount as positive value. Enter your answer in dollars not in millions.)

Reference no: EM132540840

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