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Bennett Co. has a potential new project that is expected to generate annual revenues of $255,800, with variable costs of $141,200, and fixed costs of
Bennett Co. has a potential new project that is expected to generate annual revenues of $255,800, with variable costs of $141,200, and fixed costs of $59,200. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $21,000. The annual depreciation is $23,800 and the tax rate is 40 percent. What is the annual operating cash flow?
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$173,816
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$124,120
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$79,200
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$42,760
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$43,920
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