Question: P&G is evaluating a project that will increase annual sales by $150,000 and annual cash costs by $100,000. The project will initially require $200,000 in

P&G is evaluating a project that will increase annual sales by $150,000 and annual cash costs by $100,000. The project will initially require $200,000 in fixed assets that will be depreciated straight-line to a zero book value over the five-year life of the project. The applicable tax rate is 35 percent. What is the operating cash flow for this project? $6,500 $35,000 OB OC $72,500 $46,500 OD

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