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A company is considering a new 6-year project that will have annual sales of $234,000 and costs of $146,000. The project will require fixed assets
A company is considering a new 6-year project that will have annual sales of $234,000 and costs of $146,000. The project will require fixed assets of $265,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, 11.52 percent, and 5.76 percent, respectively. The company has a tax rate of 21 percent. What is the operating cash flow for Year 2?
Multiple Choice
$36,288
$80,205
$87,328
$75,931
$78,795
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