Homework Answers
Annual depreciation = 5,000,000 / 5 = 1,000,000
Operating cash flow = (Revenue - expenses - depreciation)(1 - tax) + depreciation
Operating cash flows = (3,000,000 - 1,780,000 - 1,000,000)(1 - 0.32) + 1,000,000
Operating cash flows = 149,600 + 1,000,000
Operating cash flows = 1149600
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