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A project with a life of 6 years is expected to provide annual sales of $460,000 and costs of $333,000. The project will require an
A project with a life of 6 years is expected to provide annual sales of $460,000 and costs of $333,000. The project will require an investment in equipment of $790,000, 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?
A. 50,080
B. 162,327
C. 128,390
D. 207,094
E. 167,742
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