Question: You consider undertaking the resfarch project. It will increase sales by $200K per year starting next year and its life is 15 years. The maintenance

You consider undertaking the resfarch project. It will increase sales by

You consider undertaking the resfarch project. It will increase sales by $200K per year starting next year and its life is 15 years. The maintenance cost is $60K and the depreciation of the equipment is 20K per year. The tax rate is 40% and there are no changes in net operating working capital. What is the annual operating cash flow from the project? A. $100,000 B. $92,000 C. $120,000 D. $72,000

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