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?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!