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A Cost-Cutting Project Will Decrease Costs by $52,000 a Year

Question 96

Multiple Choice

A cost-cutting project will decrease costs by $52,000 a year.The annual depreciation on the project's fixed assets will be $5,000 and the tax rate is 21 percent.What is the amount of the change in the firm's operating cash flow resulting from this project?


A) $37,130
B) $52,000
C) $41,080
D) $46,080
E) $42,130

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