Thursday, August 18, 2011

What is the project's annual operating cash flow?

A companyu has a project expected to increase annual sales revenue by 830,000, total variable costs by 598,000 and total fixed costs by 110,000. The project requires a 450,000 investement in fixed ets which will be depreciated on straight line basis over the next five years. If the company's marginal tax rate is 35%, what is the project's annual operating cash flow.

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