Question $10$

A project will increase sales by $$84,000$ and cash expenses by $$38,000.$ The project will

cost $$46,000$ and will be depreciated using straight$-$line depreciation to a zero book value

over the $5-$year life of the project. The company has a marginal tax rate of $34\%.$ What is the

operating cash flow of the project using the tax shield approach?

$$23,460$

$$33,488$

$$47,880$

$$49,800$

$$50,350$