Question: King Nothing is evaluating a new 6-year project that will have annual sales of $450,000 and costs of $308,000. The project will require fixed assets
King Nothing is evaluating a new 6-year project that will have annual sales of $450,000 and costs of $308,000. The project will require fixed assets of $550,000, 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 34 percent. What is the operating cash flow for Year 3?
Answer Choices:
$124,887
$129,624
$115,262
$84,184
$163,416
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