Ann's Custom Catering has sales of $214,000, depreciation of $9,000, and net working capital of $16,000. The firm has a tax rate of 34 percent and a profit margin of 7 percent. The firm has no interest expense. What is the amount of the operating cash flow?

A. $7,980

B.23980

c.30350

d.39980

e.53700

2. A firm is considering a project that will increase sales by $135,000 and cash expenses by $105,000. The project will cost $120,000 and be depreciated using the straight-line method to a zero book value over the 4-year life of the project. The company has a marginal tax rate of 34 percent. What is the value of the depreciation tax shield?

A. $6,000

b. $10,200

C. $13,200

D. $19,800

E. $20,000