Question: A company is evaluating a project that will increase sales by $203,000 and costs by $121,800. The project will initially cost $609,000 for fixed assets

  1. A company is evaluating a project that will increase sales by $203,000 and costs by $121,800. The project will initially cost $609,000 for fixed assets that will be depreciated straight-line to a zero book value over the 10-year life of the project. The applicable tax rate is 25 percent. What is the annual operating cash flow for this project?

    $56,835

    $61,075

    $66,295

    $71,485

    $76,125

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