Question: Jefferson & Sons is evaluating a project that will increase annual sales by $150,000 and annual cash costs by $94,000. The project will initially require
Jefferson & Sons is evaluating a project that will increase annual sales by $150,000 and annual cash costs by $94,000. The project will initially require $110,000 in fixed assets that will be depreciated straight-line to a zero book value over the 4-year life of the project. The applicable tax rate is 40 percent. What is the operating cash flow for this project?
a. 46,620
b. 44,600
c. 46,480
d. 11,220
e. 29,920
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