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:
Verified
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