Question
You consider undertaking the research project. It will increase sales by $200K per year starting next year and its life is 15 years. The maintenance
You consider undertaking the research project. It will increase sales by $200K per year starting next year and its life is 15 years. The maintenance cost is $60K and the depreciation of the equipment is 20K per year. The tax rate is 40% and there are no changes in net operating working capital. What is the annual operating cash flow from the project?
| A. | $100,000 | |
| B. | $120,000 | |
| C. | $92,000 | |
| D. | $72,000 |
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Quantitative Analysis For Management
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna
11th Edition
9780132997621, 132149117, 132997622, 978-0132149112
