24)

What is the expected operating cash flow for year 2 of a project given the following information. To underahe the project, $308,000 must be spent on new equipment. The equipment has an expected life of 8 years and uil be depreciated straight-line over that same period to a book value of 0 . New annual sales of $186,000 are erpecteo (expected sales are the same each year). Cost of goods sold are projected to be 44% of sales. Fixed cash copentry expenses are $50,000 per year. Tax rate is 24%. In the event EBIT is negative, the firm would hove a tar credit basad on the 24% tax rate. a. 55945.78 b. 63002.00 c. 50016.60 d. 50401.60 e. 58465.86 f. 60481.92