Question: A company is evaluating a project which will increase annual sales by $70,000 and annual costs by $40,000. The project will initially require $100,000 in

A company is evaluating a project which will increase annual sales by $70,000 and annual costs by $40,000. The project will initially require $100,000 in fixed assets which will be depreciated straight-line to a zero book value over the 5-year life of the project. The applicable tax rate is 34%. What is the project cash flow in year 1?

Question 6 options:

$30,000

$46,400

$46,600

$26,600

$26,400

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