Hansel's Outings is considering opening a new wilderness trail for tourists. The trail will require $120,000 in fixed assets such as emergency shelters, rest rooms, and first aid stations plus an additional $40,000 in net working capital. The project is expected to produce tourism revenue of $140,000 annually. The annual cash expenses are projected at $75,001. The assets associated with the project belong in a 25% CCA class. The tax rate is 34%. What is the operating cash flow in the first year for this project?

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The Answer of Hansel's Outings is considering opening a new wilderness trail for tourists. The trail will require $120,000 in fixed assets such as emergency shelters, rest rooms, and first aid stations plus an additional $40,000 in net working capital. The project is expected to produce tourism revenue of $140,000 annually. The annual cash expenses are projected at $75,001. The assets associated with the project belong in a 25% CCA class. The tax rate is 34%. What is the operating cash flow in the first year for this project?

Hansel's Outings Is Considering Opening a New Wilderness Trail for Tourists