Question: Jefferson & Sons is evaluating a project that will increase annual sales by $150,000 and annual cash costs by $90,000. The project will initially require

Jefferson & Sons is evaluating a project that will increase annual sales by $150,000 and annual cash costs by $90,000. The project will initially require $100,000 in fixed assets that will be depreciated straight-line to a

zero book value over the 5-year life of the project. The applicable tax rate is 40 percent. What is the operating cash flow for this project?

	a.	$11,220
( )	b.	$29,920
( )	c.	$44,000
( )	d.	$46,480
( )	e.	$46,620

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