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A 6-year project is expected to provide annual sales of $205,000 with costs of $95,500. The equipment necessary for the project will cost $340,000 and

A 6-year project is expected to provide annual sales of $205,000 with costs of $95,500. The equipment necessary for the project will cost $340,000 and will be depreciated on a straight-line method over the life of the project. You feel that both sales and costs are accurate to +/15 percent. The tax rate is 21 percent. What is the annual operating cash flow for the worst-case scenario?

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$62,796

$42,521

$41,171

$71,822

$121,286

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