Q1: Mater Pasta Inc. has projected a sales volume of $1,432 for the second year of a proposed expansion project. Costs are normally run 70 percent of sales. The depreciation expense will be $80, and the tax rate is 22 percent. What is the operating cash flow?

EBK CFIN
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ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter9: Capital Budgeting Techniques
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Q1: Mater Pasta Inc. has projected a sales volume of $1,432 for the second year of a
proposed expansion project. Costs are normally run 70 percent of sales. The
depreciation expense will be $80, and the tax rate is 22 percent. What is the operating
cash flow?
Transcribed Image Text:Q1: Mater Pasta Inc. has projected a sales volume of $1,432 for the second year of a proposed expansion project. Costs are normally run 70 percent of sales. The depreciation expense will be $80, and the tax rate is 22 percent. What is the operating cash flow?
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