I want the correct answer with accounting question Coastal Sportswear manufactures athletic apparel. The company's CEOestimates that with the addition of a new line of performance shirts, thecompany will generate $16 million in sales. The company's operating costs are$9.5 million per year and the depreciation expense amounts to $1.8 million. Ifthe company's tax rate is 30%, what is the company's operating cash flow?Express your answer in millions.

Step 1: Definition of Operating Cash Flow (OCF)Operating Cash Flow (OCF) represents the cash a…

Answered: Coastal Sportswear manufactures…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 20P

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Tubby Toys estimates that its new line of rubber ducks will generate sales of $7 million, operating costs of $4 million, and a depreciation expense of $1 million. If the tax rate is 25%, what is the firm’s operating cash flow? Note: Do not round your intermediate calculations. Enter your answer in millions rounded to 1 decimal place.
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Accounting
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