Question: Bennett Co. has a potential new project that is expected to generate annual revenues of $265,700, with variable costs of $145.600. and fixed costs of

 Bennett Co. has a potential new project that is expected to

Bennett Co. has a potential new project that is expected to generate annual revenues of $265,700, with variable costs of $145.600. and fixed costs of $62,500. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $26,500. The annual depreciation is $26,000 and the tax rate is 35 percent. What is the annual operating cash flow? Multiple Choice 0 $182,612 O O $129,200 O O $46,540 O 0 $40.200 o Du 6 of 11 Next >

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!