Question: A company is evaluating a project that will increase sales by $500,000 and costs by $174,000. The project will initially cost $460,000 for fixed assets
A company is evaluating a project that will increase sales by $500,000 and costs by $174,000. The project will initially cost $460,000 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 operating cash flow for this project? $278,500 $271,000 $263,500 $256,000 $248,500
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