A project is expected to generate annual revenues of $125, 700, with variable costs of $ 77,800, and fixed costs of $18,300. The annual depreciation is $4, 350 and the tax rate is 25 percent. What is the annual operating cash flow?

A project is expected to generate annual revenues of $125, 700, with variable costs of $ 77,800, and fixed costs of $18,300. The annual depreciation is $4, 350 and the tax rate is 25 percent. What is the annual operating cash flow?

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 7P: Your division is considering two investment projects, each of which requires an up-front expenditure...

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Question

A project is expected to generate annual revenues of $125, 700, with variable costs of $
77,800, and fixed costs of $18,300. The annual depreciation is $4, 350 and the tax rate is 25
percent. What is the annual operating cash flow?

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