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Kathys Kabinets is looking at a project that will require $120,000 in fixed assets and another $20,000 in net working capital. The project is expected
Kathys Kabinets is looking at a project that will require $120,000 in fixed assets and another $20,000 in net working capital. The project is expected to produce sales of $154,000 with associated costs of $91,000. The project has a 4-year life. The company uses straight-line depreciation to a zero book value over the life of the project. The tax rate is 35%. What is the operating cash flow for this project?
a. $51,450
b. $68,640
c. $44,300
d. $43,600
e. $55,820
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