Question: Bennett Co. has a potential new project that is expected to generate annual revenues of $263,000, with variable costs of $144.400, and fixed costs of
Bennett Co. has a potential new project that is expected to generate annual revenues of $263,000, with variable costs of $144.400, and fixed costs of $61,600. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $25,000. The annual depreciation is $25,400 and the tax rate is 35 percent. What is the annual operating cash flow? Multiple Choice $127.490 $40,890 $180,212
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