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A company is considering a 5-year project to open a new productline. A new machine with an installed cost of $90,000 would berequired to manufacture their new product, which is estimated toproduce sales of $80,000 in new revenues each year. The cost ofgoods sold to produce these sales (not including depreciation) isestimated at 55% of sales, and the tax rate at this firm is 40%. Ifstraight-line depreciation is used to calculate annualdepreciation, what is the estimated annual operating cash flow fromthis project each year? (Answer to the nearest dollar.)
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