Question: Ernie's Electrical is evaluating a project which will increase sales by $60,000 and costs by $20,000. The project will cost $125,000 and be depreciated straight-line

Ernie's Electrical is evaluating a project which will increase sales by $60,000 and costs by $20,000. The project will cost $125,000 and be depreciated straight-line to a zero book value over the 10 year life of the project. The applicable tax rate is 34%. What is the operating cash flow for this project?

		$38,300
		$5,000
		$9,350
		$30,650

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