Question: 1.A project will require $80,000 in fixed assets and another $20,000 in net working capital. The project is expected to produce sales of $110,000 with

1.A project will require $80,000 in fixed assets and another $20,000 in net working capital. The project is expected to produce sales of $110,000 with associated costs of $70,000. The project has a 4-year life. The company uses straight-line depreciation. The is zero book value over the life of the project. The tax rate is 35 percent. What is the operating cash flow for this project?

2.Given sales of $.76M and a profit margin of 8%. The depreciation expense is $50K. What is the OCF of the company? There is no long-term debt.

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