Question: A 5 - year project is expected to provide annual sales of $ 2 3 7 , 0 0 0 with costs of $ 9

A 5-year project is expected to provide annual sales of $237,000 with costs of $99,500. The equipment necessary for the project will cost $380,000 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 21 percent. What is the annual operating cash flow for the worst-case scenario?
Multiple Choice
$143,185
$52,215
$105,590
$65,210
$84,710
 A 5-year project is expected to provide annual sales of $237,000

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