A project will increase annual sales by $60,000 and annual cash expenses by $51,000.The project will cost $40,000 and will be depreciated using straight-line depreciation to a zero book value over the 4-year life of the project.Ignore bonus depreciation.The company has a marginal tax rate of 23 percent.What is the annual operating cash flow using the tax shield approach?
A)$5,850
B)$8,650
C)$9,230
D)$9,770
E)$10,350

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The Answer of A project will increase annual sales by $60,000 and annual cash expenses by $51,000.The project will cost $40,000 and will be depreciated using straight-line depreciation to a zero book value over the 4-year life of the project.Ignore bonus depreciation.The company has a marginal tax rate of 23 percent.What is the annual operating cash flow using the tax shield approach?
A)$5,850
B)$8,650
C)$9,230
D)$9,770
E)$10,350

A Project Will Increase Annual Sales by $60,000 and Annual