Question: A company is evaluating a project that will increase sales by $208,000 and costs by $124,800. The project will initially cost $624,000 for fixed assets

  1. A company is evaluating a project that will increase sales by $208,000 and costs by $124,800. The project will initially cost $624,000 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 16 percent. What is the annual operating cash flow for this project?

    $80,496

    $78,000

    $79,248

    $78,624

    $79,872

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