Ripley Co.is considering a project that will produce sales of $21,000 and increase cash expenses by $8,600.If the project is implemented,the firm's taxes will increase from $23,000 to $27,000 and depreciation will increase from $4,000 to $5,500.What is the amount of the operating cash flow using the top-down approach?
A) $6,900
B) $8,400
C) $12,400
D) $10,900
E) $9,900
Correct Answer:
Verified
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