Question: 5th answer is $71,822 A 6-year project is expected to provide annual sales of $205,000 with costs of $95,500. The equipment necessary for the project
A 6-year project is expected to provide annual sales of $205,000 with costs of $95,500. The equipment necessary for the project will cost $340,000 and will be depreciated on a straight-line method over the life of the project. You feel that both sales and costs are accurate to +/-15 percent. The tax rate is 34 percent. What is the annual operating cash flow for the worst-case scenario? Multiple Choice
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