Solved: Annual depreciation expense of one million dollars annual, Accounting Basics

Annual depreciation expense of one million dollars annual

Your planned hotel is projected to have the following:

1) Annual sales of three million dollars;

2) Annual operating expense of one million dollars;

3) Annual depreciation expense of one million dollars;

4) Annual net working capital of 500 thousand dollars. If the tax rate is 40%, what is its annual net cash flow?

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Accounting Basics: Annual depreciation expense of one million dollars annual

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Accounting Basics: Annual depreciation expense of one million dollars annual

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