Question: A project requires an initial capital spending on the fixed asset of $790,395. The asset will be depreciated straight-line to zero over the project's life
A project requires an initial capital spending on the fixed asset of $790,395. The asset will be depreciated straight-line to zero over the project's life of 6 years. The project will generate $330,165 in annual sales, with annual operating costs of $220,110. The tax rate is 24%. What is the annual operating cash flow for this project?
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