Question: Bennett Company has a potential new project that is expected to generate annual revenues of $260,300, with variable costs of $143,200, and fixed costs of

Bennett Company has a potential new project that is expected to generate annual revenues of $260,300, with variable costs of $143,200, and fixed costs of $60,700. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $23,500. The annual depreciation is $24,800 and the tax rate is 21 percent. What is the annual operating cash flow? Multiple Choice o $125,780 $81,200 U $49.764 O $41.580 $177,812
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
