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A project with a life of 6 years is expected to provide annual sales of $340,000 and costs of $237,000. The project will require an

A project with a life of 6 years is expected to provide annual sales of $340,000 and costs of $237,000. The project will require an investment in equipment of $610,000, which 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 34 percent. What is the annual operating cash flow for the best-case scenario?

  • $125,103

  • $129,342

  • $99,014

  • $159,670

  • $45,424

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