A cost-cutting project will decrease costs by 37400 a year, Finance Basics

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A cost-cutting project will decrease costs by 37400 a year

Question: A cost-cutting project will decrease costs by $37,400 a year. The annual depreciation on the project's fixed assets will be $4,700 and the tax rate is 34 percent. What is the amount of the change in the firm's operating cash flow resulting from this project?

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