QUESTION
64. The Blue Lagoon is considering a project with a five-year life. The project requires $110,000 of fixed assets that a
Category: Business
Subject: Finance
Due Date: 02/02/2016
Question Asked: 2016-02-03 02:55:14
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64. The Blue Lagoon is
considering a project with a five-year life. The project requires $110,000 of
fixed assets that are classified as five-year property for MACRS. Variable
costs equal 71 percent of sales, fixed costs are $9,600, and the tax rate is 35
percent. What is the operating cash flow for year 4 given the following sales
estimates and MACRS depreciation allowance percentages?
A. -$1,806
B. $640
C. $1,809
D. $2,342
E. $2,811
AVAILABLE ANSWERS
64. The Blue Lagoon is considering a project with a five-year life. The project requires $110,000 of fixed assets that a
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Posted on 2016-02-03 02:55:14
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