Question
Your company is planning a $216,000 to invest in new equipment. This cost will be depreciated on a straight-line basis over a 4-year period. They
Your company is planning a $216,000 to invest in new equipment. This cost will be depreciated on a straight-line basis over a 4-year period. They can salvage it for $45,000. You need to invest $40,000 in new Net Working Capital, which will be returned at the end of the project. The new equipment is expected to generate $489,000 in additional annual sales. Costs are 46% of sales. The tax rate is 34%.
17)What is the operating cash flow for the first year of this project?
round to nearest dollar. enter the number with commas if necessary
Question 17 options:
A. 192,639 | |
B. 210,060 | |
C. 262,339 | |
D. 489,000 | |
E. 264,060 |
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