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ABC inc is considering a new five-year expansion project that requires an initial fixed asset investment of $6,089 million. The fixed asset will be depreciated
ABC inc is considering a new five-year expansion project that requires an initial fixed asset investment of $6,089 million. The fixed asset will be depreciated straight-line to zero over the project's life, after which time it will be worthless. The project is estimated to generate $ 4,389,000 in annual sales, with costs of $ 1,731,200. The tax rate is 24 percent. What is the annual operating cash flow for this project?
A. $2,312,200
B. $936,000
C. $2,848,315
D. $1,211,407
E. $1,727,570
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