Question: A company is evaluating a project that will increase annual sales by $372232 and annual operating costs by $185,000. The project will initially cost $464,000
A company is evaluating a project that will increase annual sales by $372232 and annual operating costs by $185,000. The project will initially cost $464,000 for fixed assets that will be depreciated straight-line to a zero book value over the 8-year life of the project. The applicable tax rate is 25 percent. What is the operating cash flow in year 4 for this project? (Enter the result with two digits after the decimal point in the following format: 12345.67)
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