Question: Bennett Company has a potential new project that is expected to generate annual revenues of $265,700, with variable costs of $145,600, and fixed costs of

Bennett Company has a potential new project that is expected to generate annual revenues of $265,700, with variable costs of $145,600, and fixed costs of $62,500. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $26,500. The annual depreciation is $26,000 and the tax rate is 21 percent. What is the annual operating cash flow?

Multiple Choice

$40,200
$83,600
$50,964
$129,200
$182,612

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