Question: Marie's Fashions is considering a project that will require $30,000 in net working capital and $83,000 in fixed assets. The project is expected to produce
Marie's Fashions is considering a project that will require $30,000 in net working capital and $83,000 in fixed assets. The project is expected to produce annual sales of $98,000 with associated costs of $58,000. The project has a 5-year life. The company uses straight-line depreciation to a zero book value over the life of the project. The tax rate is 34 percent. Calculate operating cash flow.
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