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Ernie's Electrical is evaluating a project that will increase sales by $39,000 and costs by $6,000. The project will initially cost $102,000 for fixed assets
Ernie's Electrical is evaluating a project that will increase sales by $39,000 and costs by $6,000. The project will initially cost $102,000 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 35 percent. What is the operating cash flow for this project?
$13,300 | |
$21,450 | |
$25,020 | |
$11,550 | |
$18,180 |
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