Question: Andover Engineering is evaluating a project that will increase sales by $2,390,000 and costs by $1,634,000. The project will initially cost $4,200,000 for fixed assets

Andover Engineering is evaluating a project that will increase sales by $2,390,000 and costs by $1,634,000. The project will initially cost $4,200,000 for fixed assets that will be depreciated straight-line to a zero book value over the 10-year life of the project. The applicable tax rate is 34 percent. What is the annual operating cash flow for this project?

		$847,980
		$791,830
		$726,450
		$684,280
		$641,760

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