Bennett Company has a potential new project that is expected to generate annual revenues of $265, 700, with variable costs of $145, 600, and fixed costs of $62, 500. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $26,500. The annual depreciation is $26,000 and the tax rate is 21 percent. What is the annual operating cash flow? Multiple Choice $40, 200 $182, 612 $83, 600 $50, 964 $129, 200

Bennett Company has a potential new project that is expected to generate annual revenues of $265, 700, with variable costs of $145, 600, and fixed costs of $62, 500. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $26,500. The annual depreciation is $26,000 and the tax rate is 21 percent. What is the annual operating cash flow? Multiple Choice $40, 200 $182, 612 $83, 600 $50, 964 $129, 200

Name: Bennett Company has a potential new project that is expected to gener
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Description: Bennett Company has a potential new project that is expected to generate annual revenues of $265, 700, with variable costs of $145,600, and fixed costs of $62,500. To finance the new project,the company will need to issue new debt that will have an

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section10.A: Mutually Exclusive Investments Having Unequal Lives

Problem 2P

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