Question: Bennett Co. has a potential new project that is expected to generate annual revenues of $248,600, with variable costs of $138,000, and fixed costs of

Bennett Co. has a potential new project that is expected to generate annual revenues of $248,600, with variable costs of $138,000, and fixed costs of $56,800. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $17,000. The annual depreciation is $22,200 and the tax rate is 34 percent. What is the annual operating cash flow?

A. $43,056

B. $118,148

C. $167,412

D. $76,000

E. $44,348

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