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Bennett Company has a potential new project that is expected to generate annual revenues of $ 2 6 3 , 0 0 0 , with

Bennett Company has a potential new project that is expected to generate annual revenues of $263,000, with variable costs of $144,400, and fixed costs of $61,600. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $25,000. The annual depreciation is $25,400 and the tax rate is 35 percent. What is the annual operating cash flow?
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$127,490
$82,400
$180,212
$45,940
$40,890

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