Multiple Choice A company is considering a new 6-year project that will have annual sales of $225,000 and costs of $140,000. The project will require fixed assets of $259,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, 11.52 percent, and 5.76 percent, respectively. The company has a tax rate of 34 percent. What is the operating cash flow for Year 2? $70,777 ○ $73,008 O $66,245
Multiple Choice A company is considering a new 6-year project that will have annual sales of $225,000 and costs of $140,000. The project will require fixed assets of $259,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, 11.52 percent, and 5.76 percent, respectively. The company has a tax rate of 34 percent. What is the operating cash flow for Year 2? $70,777 ○ $73,008 O $66,245
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section10.A: Mutually Exclusive Investments Having Unequal Lives
Problem 2P
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