Question: 2 A company is evaluating a project which will increase annual sales by $120,000 and annual costs by $80,000. The project will initially require $50,000

2 A company is evaluating a project which will increase annual sales by $120,000 and annual costs by $80,000. The project will initially require $50,000 in fixed assets which will be depreciated straight-line to a zero book value over the 5-year life of the project. The applicable tax rate is 34 percent. What is the operating cash flow for this project?

$20,484

$29,800

$33,526

$74,584

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