Ernie's Electrical is evaluating a project that will increase sales by $39,000 and costs by $6,000.The project will initially cost $102,000 for fixed assets that will be depreciated straight-line to a zero book value over the 10-year life of the project.The applicable tax rate is 35 percent.What is the operating cash flow for this project?
A) $13,300
B) $21,450
C) $25,020
D) $11,550
E) $18,180
Correct Answer:
Verified
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