Question: Jefferson & Sons is evaluating a project that will increase annual sales by $80,000 and annual costs by $35,000. The project will initially require $150,000

Jefferson & Sons is evaluating a project that will increase annual sales by $80,000 and annual costs by $35,000. The project will initially require $150,000 in 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 34 percent. What is the operating cash flow for this project?

$29,700

$19,800

$34,800

$25,200

$30,000

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