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(Calculating free cash flows) Vandelay Industries is considering a new project with a 4-year life with the following cost and
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Answer #1

Free cash flow in year 1 = (Sales-Cost)*(1-Tax) + Tax rate*Depreciation

= (112000-62000)*(1-31%)+ 31%* 120000/4

= 34500+9300

= 43800

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