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 will need to issue new debt that will have an annual interest expense of $17,500. The annual depreciation is $22,400 and the tax rate is 35 percent. What is the annual operating cash flow? Multiple Choice O $42,940 O $44,340 O $118,940 O $168,212 O $76,400 The Lumber Yard is considering adding a new product line that is expected to increase annual sales by $372,000 and expenses by $260,000. The project will require $169,000 in fixed assets that will be depreciated using the straight-line method to a zero book value over the 9-year life of the project. The company has a marginal tax rate of 35 percent. What is the depreciation tax shield? Multiple Choice $39,200 O $18,308 O $14,467 O $6,572 O $15,167