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Andover Engineering is evaluating a project that will increase sales by $2,390,000 and costs by $1,634,000. The project will initially cost $4,200,000 for fixed assets

Andover Engineering is evaluating a project that will increase sales by $2,390,000 and costs by $1,634,000. The project will initially cost $4,200,000 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 34 percent. What is the annual operating cash flow for this project?

$847,980

$791,830

$726,450

$684,280

$641,760

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