Question: Bennett Co. has a potential new project that is expected to generate annual revenues of $260,000, with costs of $200,500. The annual depreciation is $24,100

Bennett Co. has a potential new project that is expected to generate annual revenues of $260,000, with costs of $200,500. The annual depreciation is $24,100 and the tax rate is 21 percent. An initial cash outlay of $18,200 is required for net working capital. What is the annual operating cash flow?

Annual Operating Cash Flow =

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!

Bennett Co. has a potential new project that is expected to generate annual revenues of $249,200, with costs of $195,100. To finance the new project, the company will need to issue new debt that will...

Bennett Co. has a potential new project that is expected to generate annual revenues of $264,200, with costs of $202,600. The annual depreciation is $24,800 and the tax rate is 21 percent. An initial...

Bennett Co. has a potential new project that is expected to generate annual revenues of $251,000, with costs of $196,000. The annual depreciation is $22,600 and the tax rate is 21 percent. An initial...

Bennett Co. has a potential new project that is expected to generate annual revenues of $262,100, with variable costs of $144,000, and fixed costs of $61,300. to finance the new project, the company...

Part A Bennett Co. has a potential new project that is expected to generate annual revenues of $260,300, with variable costs of $143,200, and fixed costs of $60,700. To finance the new project, the...

A. Bennett Co. has a potential new project that is expected to generate annual revenues of $262,100, with variable costs of $144,000, and fixed costs of $61,300. To finance the new project, the...

Bennett Co. has a potential new project that is expected to generate annual revenues of $249,500, with variable costs of $138,400, and fixed costs of $57,100. To finance the new project, the company...

1. You purchased a stock at a price of $40.71. The stock paid a dividend of $1.47 per share and the stock price at the end of the year is $46.21. What was the dividend yield? 4.33% 3.61% 13.51% 3.97%...

Part A. You own a house that you rent for $1,425 per month. The maintenance expenses on the house average $265 per month. The house cost $232,000 when you purchased it 4 years ago. A recent appraisal...

Successful Web portals have a high degree of stickiness. In about 200 words, explain how a Web portal would increase its stickiness and explain why it would want to do so.

Why do tax preferences often result in differences between book income and tax-able income? Would a book/tax difference from a tax preference be a permanent difference or a temporary difference?...

Which of the following statements is true about pay - through securities ? Group of answer choices Pay - through securities involve a variable interest rate for investors. Pay - through securities...

A company is preparing completing their Cash Budget. The following data has been prepared for cash receipts and payments. January February March Cash receipts $1,061,200 $1,182,400 $1,091,700 Cash...