Question: Bennett Company has a potential new project that is expected to generate annual revenues of $ 2 6 4 , 8 0 0 , with

Bennett Company has a potential new project that is expected to generate annual revenues of $264,800, with variable costs of $145,200, and fixed costs of $62,200. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $26,000. The annual depreciation is $25,800 and the tax rate is 21 percent. What is the annual operating cash flow?
Multiple Choice
$50,764
$128,372
$83,200
$181,812
$40,172

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!