Question: King Nothing is evaluating a new 6-year project that will have annual sales of $445,000 and costs of $305,000. The project will require fixed assets

King Nothing is evaluating a new 6-year project that will have annual sales of $445,000 and costs of $305,000. The project will require fixed assets of $545,000, which will be depreciated on a 5 -year MACPS schedule. The annual deprociation percentage5 are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, 11.52 percent, and 5.76 percent, respectively. The company has a tax rate of 25 percent. What is the operating cash llow for Year 3 ? Mutwiple Crioice $131,360 $120.696 $127,208 A company is considering a new 6-year project that will have annual sales of $240,000 and costs of $150,000. The project wili require fixed assets of $269,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, 11.52 percent, and 5.76 percent, respectively. The company has a tax rate of 23 percent What is the operating cash flow for Year 2 ? Muitipte Choice $40.498 579,612 581.179
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