Question: I need help finding the accurate solution to this general accounting problem with valid methods. A project is expected to increase the company's sales by

I need help finding the accurate solution to this general accounting problem with valid methods.

A project is expected to increase the company's sales by $75,000 and increase its expenses by $55,000. The project will cost $60,000 and will be depreciated using straight-line depreciation to a zero book value over the 4-year life of the project. The company's corporate tax rate is 25%. What is the annual operating cash flow of the project using the tax shield approach? a. $13,750 b. $15,625 c. $16,250 d. $17,500 e. $18,750 f. $14,500

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