Solved

Your Local Athletic Center Is Planning a $500,000 Expansion to Its

Question 107

Multiple Choice

Your local athletic center is planning a $500,000 expansion to its current facility.This cost will be depreciated on a straight-line basis over a 20-year period.The expanded area is expected to generate $175,000 in additional annual sales.Variable costs are 32 percent of sales, the annual fixed costs are $40,000, and the tax rate is 21 percent.What is the operating cash flow for the first year of this project?


A) $62,410.00
B) $99,260.00
C) $67.660.00
D) $42,660.00
E) $31,450.00

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents