A project is expected to generate annual revenues of $120,900, with variable costs of $76,000, and fixed costs of $16,500. The annual depreciation is $4,050 and the tax rate is 21 percent. What is the annual operating cash flow? Multiple Choice O O $28,400 $23,286 $46,520 $32,450 $63,020
A project is expected to generate annual revenues of $120,900, with variable costs of $76,000, and fixed costs of $16,500. The annual depreciation is $4,050 and the tax rate is 21 percent. What is the annual operating cash flow? Multiple Choice O O $28,400 $23,286 $46,520 $32,450 $63,020
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 10P: Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year...
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Step 1
Operating Cash Flow:
- It represents the amount of cash produced by the firm from its normal business operations.
- It is estimated by adding non-cash expenses to the firm's net income.
- It acts as an indicator of a firm's ability to produce sufficient positive normal cash flows.
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