Question: A project will generate sales of $52,900 each. The variable costs are $13,506 and the fixed costs are $13,079. The project will use an equipment

A project will generate sales of $52,900 each. The variable costs are $13,506 and the fixed costs are $13,079. The project will use an equipment worth $111,251 that will be depreciated on a straight-line basis to a zero book value over a 9-year life of the project. If the tax rate is 23%, what is the operating cash flow?

Note: Enter your answer rounded off to two decimal points.

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!

Crane Tar and Gravel Ltd. operates a road construction business. In its first year of operations, the company won a contract to build a road for the municipality of Cochrane West. It is estimated...

A project will generate sales of $50,300 each. The variable costs are $18,189 and the fixed costs are $14,391. The project will use equipment worth $100,050 that will be depreciated on a...

A project will generate sales of $45,952 each. The variable costs are $19,216, and the fixed costs are $12,445. The project will use equipment worth $119,503 that will be depreciated on a...

A project will generate sales of $44,512 each. The variable costs are $14,532 and the fixed costs are $11,806. The project will use an equipment worth $110,307 that will be depreciated on a...

A project will generate sales of $46,347 each. The variable costs are $19,519 and the fixed costs are $19,215. The project will use an equipment worth $119,505 that will be depreciated on a...

A project will generate sales of $74,660 each. The variable costs are $5,080 and the fixed costs are $15,896. The project will use an equipment worth $141,426 that will be depreciated on a...

A project will generate sales of $53,284 each. The variable costs are $19,574 and the fixed costs are $12,148. The project will use an equipment worth $108,438 that will be depreciated on a...

A project will generate sales of $45,575 each. The variable costs are $19,267 and the fixed costs are $10,232. The project will use an equipment worth $108,747 that will be depreciated on a...

1. A project will generate sales of $65,319 each. The variable costs are $18,851 and the fixed costs are $10,300. The project will use an equipment worth $104,213 that will be depreciated on a...

Question 1 Use the following information to answer question 11 and 12 ("m" indicates that the amount is given in millions) [25 Marks] Slinky Ltd manufactures toys and recently listed on the...

Discuss the meaning of each of the two poems listed below: We shall have to evolve Problem solvers galore Since each problem they solve Creates ten problems more. Author unknown Jack and Jill went up...

A study by the Annenberg Public Policy Center investigated one major area of business decisions: pricing practices.6 Specifically, the study addressed consumer knowledge and attitudes about the...

Use the graph of G shown to the right to find the limit . If necessary, state that the limit does not exist. lim x - 2 - g ( x ) Select the correct choice below and, if necessary, fill in the answer...

The probability that an individual recovers from an illness in a one-week time period without treatment is 0.1. Suppose that 20 independent individuals suffering from this illness are treated with a...

The number of errors in a textbook follow a Poisson distribution with a mean of 0.01 error per page. What is the probability that there are three or less errors in 100 pages?

A lot of 75 washers contains 5 in which the variability in thickness around the circumference of the washer is unacceptable. A sample of 10 washers is selected at random, without replacement. (a)...

Consider a market where supply and demand are given by Qsx = 10 + Px and Qdx = 56 2Px. Suppose the government imposes a price floor of $25, and agrees to purchase any and all units consumers do not...

1. Some have argued that higher cigarette prices do not deter smoking. While there are many arguments both for and against this view, some find the following argument to be the most persuasive of...

------------------------------------- At the beginning of its first year of operations, Bonita Limited has 4,900, $3 preferred shares and 48,000 common shares. Using the format shown below, allocate...

Technology. The owner of your company recently purchased two pairs of season tickets for the local symphony orchestra concerts. He will retain one pair of tickets but make the other available to...

On July 1, you relocated your business from one Detroit suburb to another. A month prior to your move, you phoned your security system provider and notified its representative to cancel your service...

Technology. Brenda Durwood, one of your employees and president of the Woodland Ski and Snowboard Club,has requested permission to hold the clubs annual Gear Swap fund-raiser in the company parking...