Question
5) Tethys is considering a new project that is expected to increase the company's sales by $112,182 per year for 6 years (sales increase once,
5) Tethys is considering a new project that is expected to increase the company's sales by $112,182 per year for 6 years (sales increase once, and this additional revenue is retained thereafter). The production costs are 49%, and there would be an increase in payroll of 26312 euros. Investing in the project would cost 189826 euros in fixed assets, which would be depreciated on a straight-line basis over 8 years, and would be scrapped at the end of the project. The tax rate is 1/3. The company is assumed to be profitable each year and the project will not affect its working capital. What annual cash flow from operations will the project bring to the company? (no decimals)
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