Bennett Company has a potential new project that is expected to generate annual revenues of $261,200, with variable costs of $143,600, and fixed costs of $61,000. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $24,000. The annual depreciation is $25,000 and the tax rate is 21 percent. What is the annual operating cash flow?

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter11: Capital Budgeting Decisions
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Bennett Company has a potential new project that is expected to
generate annual revenues of $261,200, with variable costs of $143,600,
and fixed costs of $61,000. To finance the new project, the company will
need to issue new debt that will have an annual interest expense of
$24,000. The annual depreciation is $25,000 and the tax rate is 21
percent. What is the annual operating cash flow?
Transcribed Image Text:Bennett Company has a potential new project that is expected to generate annual revenues of $261,200, with variable costs of $143,600, and fixed costs of $61,000. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $24,000. The annual depreciation is $25,000 and the tax rate is 21 percent. What is the annual operating cash flow?
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