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

A 9-year project is expected to provide annual sales of $225,000 with costs of $98,000. The
equipment necessary for the project will cost $3bar(65,000) and will be depreciated on a
straight-line mel od over the life of the project. You feel that both sales and costs are
accurate to +-10 percent. The tax rate is 21 percent. What is the annual operating cash OCF
flow for the worst-case scenario?
 A 9-year project is expected to provide annual sales of $225,000

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