In Year 3 of Project Gamma

question 83

Multiple Choice

In year 3 of project Gamma. sales were $3,000,0000, cost of goods sold $1,500,000, other cash costs were $400,000, depreciation was $600,000 and interest expense was $250,000. The company's marginal tax rate is 35%. Compute operating cash flow for year 3 of project Gamma.

• A) $925,000
• B) $675,000
• C) $500,000
• D) $325,000

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