Question: Bennett Co. has a potential new project that is expected to generate annual revenues of $251,300, with variable costs of $139,200, and fixed costs of
Bennett Co. has a potential new project that is expected to generate annual revenues of $251,300, with variable costs of $139,200, and fixed costs of $57,700. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $18,500. The annual depreciation is $22,800 and the tax rate is 34 percent. What is the annual operating cash flow?
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