Question
In working on a bid project you have determined that $318,000 of fixed assets will be required and that they will be depreciated straight-line to
In working on a bid project you have determined that $318,000 of fixed assets will be required and that they will be depreciated straight-line to zero over the 6-year life of the project. You have also determined that the discount rate should be 18 percent and the tax rate will be 35 percent. In addition, the annual cash costs will be $198,200. After considering all of the projects cash flows you have determined that the required operating cash flow is $92,400. What is the amount of annual sales revenue that is required?
Can you please show work and calculations. Really trying to figure it out.
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