A company is evaluating a project that will increase sales by $208,000 and costs by $124,800. The project will initially cost $624,000 for fixed assets that will be depreciated straight-line to a zero book value over the 10- year life of the project. The applicable tax rate is 32 percent. What is the annual operating cash flow for this project? $77,168 $74,672 $75,920 O $75,296 O $76,544 QUESTION 7 Assume a machine costs $508,000 and lasts seven years before it is replaced. The operating cost is $105,000 a year. Ignore taxes. What is the equivalent annual cost if the required rate of return is 14 percent? (Hint: the EAC should account for both initial investment and annual operating costs) $223,461.73 O $226,260.04 $229,058.35 $231,856.66 $234,654.97