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Bennett Co. has a potential new project that is expected to generate annual revenues of $265,700 with variable costs of $145,600 and fixed cost of
Bennett Co. has a potential new project that is expected to generate annual revenues of $265,700 with variable costs of $145,600 and fixed cost of $62,500. To finance the new project the company will need to issue new debt that will have an annual interest expense of $26,500. The annual depreciation is $26,000 and the tax rate is 35 percent. What is the annual operating cash flow?
1. $83,600
2. $182,612
3. $40,200
4. $46,540
5. $129,200
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