Question
Marta's Marina is projecting out sales for the new fuel station they are opening. Marta plans on borrowing money to pay for the project and
Marta's Marina is projecting out sales for the new fuel station they are opening. Marta plans on borrowing money to pay for the project and expects it to generate $182,247 in interest expense each year. She also estimates it will bring in $1,401,900 in new sales annually, though with additional costs of $911,235 and depreciation of $168,228 each year.
If Marta has a marginal tax rate of 22%, what should the company use as the annual operating cash flow for the fuel station project?
Multiple Choice
-
$277,576.20
-
$459,823.20
-
$419,728.86
-
$140,190.00
-
$490,665.00
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started