KLS, Inc. is considering a four-year project that requires the purchase of $2,435,700 worth of equipment. The equipment is in a 30% CCA class. The company will incur $112,500 in annual interest and taxes at the 34% marginal rate for this project. Sales are estimated at $1.5 million a year with costs averaging $939,500 annually over the life of the project. What is the operating cash flow in year 4 of the project?

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The Answer of KLS, Inc. is considering a four-year project that requires the purchase of $2,435,700 worth of equipment. The equipment is in a 30% CCA class. The company will incur $112,500 in annual interest and taxes at the 34% marginal rate for this project. Sales are estimated at $1.5 million a year with costs averaging $939,500 annually over the life of the project. What is the operating cash flow in year 4 of the project?

KLS, Inc Is Considering a Four-Year Project That Requires the Purchase