Question: eanuts Industries is starting a new project to develop tiger logo pink slippers for the Clemson football team. This project will generate revenues of $300,000

  1. eanuts Industries is starting a new project to develop tiger logo pink slippers for the Clemson football team. This project will generate revenues of $300,000 annually. Annual cash expenses including Fixed and Variable Costs equal $190,000 --- in addition to the cash expenditures depreciation will be $20,000. The marginal tax rate is 40%. Calculate the operating cash flow for Peanuts Industries.

  1. $54,000
  2. $64,000
  3. $74,000
  4. $84,000

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