Athletics Company has a potential new project that is expected to generate annual revenues of $266,600, with variable costs of $146,000, and fixed costs of $62,800. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $27,000. The annual depreciation is $26,200 and the tax rate is 21 percent. What is the annual operating cash flow? $183,416 $51,164 $84,000 $41,280 $131,080
Athletics Company has a potential new project that is expected to generate annual revenues of $266,600, with variable costs of $146,000, and fixed costs of $62,800. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $27,000. The annual depreciation is $26,200 and the tax rate is 21 percent. What is the annual operating cash flow? $183,416 $51,164 $84,000 $41,280 $131,080
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 17E: Postman Company is considering two independent projects. One project involves a new product line,...
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