Question: King Nothing is evaluating a new 6-year project that will have annual sales of $375,000 and costs of $263,000. The project will require fixed assets
King Nothing is evaluating a new 6-year project that will have annual sales of $375,000 and costs of $263,000. The project will require fixed assets of $475,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 3200 percent, 1920 percent, 11.52 percent, 1152 percent, and 576 percent, respectively The company has a tax rate of 40 percent. What is the operating cash flow for Year 3? Multiple Choice $81,280 89088 $103,680
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