A nine-year project is expected to generate annual revenues of $114,500,variable costs of $73,600,and fixed costs of $14,000.The annual depreciation is $3,500 and the tax rate is 34 percent.What is the annual operating cash flow?

Question

Quizplus · Accepted Answer

Operating cash flow = ($114,500 - $73,600 - $14,000) × (1 - 0.34) + ($3,500 × 0.34) = $18,944

A Nine-Year Project Is Expected to Generate Annual Revenues of $114,500,variable