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A Cost-Cutting Project Will Decrease Costs by $37,000 a Year

Question 48

Multiple Choice

A cost-cutting project will decrease costs by $37,000 a year.The annual depreciation on the project's fixed assets will be $2,750 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) $27,057.50
B) $31.980.00
C) $29,230.50
D) $26,080.00
E) $29,807.50

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