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Please answer the following question. A company is considering a new 6-year project that will have annual sales of $255,000 and costs of $160,000. The
Please answer the following question.
"A company is considering a new 6-year project that will have annual sales of $255,000 and costs of $160,000. The project will require fixed assets of $279,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, 11.52 percent, and 5.76 percent, respectively. The company has a tax rate of 35 percent. What is the operating cash flow for Year 2?"
Please explain, thank you!
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