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Question Completion Status: > Moving to another question will save this response. Question 7 of 10 Question7 1 points Save Answer The firm has an after-tax cost of capital of 12% and its tax rate is 40%Last year the firma had S7.2 million of sales, with operating margin of 28%, while depreciation expense was S800 000, and int rest expense S200 000. Calculate the m e ating cashflow a. $2.616 million b. $2.716 million O c. $ 2.816 million d-$ 2.916 million e.$ 2.96 million Question 7 of 10 Ly Moving to another question will save this response.

Explanation / Answer

Answer is 2.816 Million

Operatng Cash flow =Net Income +Depreciation

Net income==7.2*0.28=2.016

Operatng Cash flow =2.016+.8=2.816 Million

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