Question: A cost-cutting project will decrease costs by $65,900 a year. The annual depreciation will be $15,600 and the tax rate is 34 percent. What is

A cost-cutting project will decrease costs by $65,900 a year. The annual depreciation will be $15,600 and the tax rate is 34 percent. What is the operating cash flow for this project?

Hint: here EBIT = cost savings - Depreciation.

a. $38,190

b. $27,710

c. $43,494

d. $48,798

e. $17,102

Thanks in advance!

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