Question: Fairchild is evaluating a project that will increase sales by $258,000 and costs by $192,000. The project will initially cost $501,000 for fixed assets that

Fairchild is evaluating a project that will increase sales by $258,000 and costs by $192,000. The project will initially cost $501,000 for fixed assets that will be depreciated straight-line to a zero book value over the 10-year life of the project. The applicable tax rate is 25 percent. What is the operating cash flow for this project?

		$62,025
		$60,005
		$58,670
		$55,150
		$65,315

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