Intro
A new project is expected to generate annual sales of $140,000 and annual costs of $133,000.
Annual depreciation attributable to the project is $60,000. The marginal tax rate is 34%.
Part 1
What is the supplemental operating cash flow in each year of operation?
Operating cash flow = (Sales - costs - depreciation)(1 - tax) + depreciation
Operating cash flow = (140,000 - 133,000 - 60,000)(1 - 0.34) + 60,000
Operating cash flow = -34,980 + 60,000
Operating cash flow = $25,020
Intro A new project is expected to generate annual sales of $140,000 and annual costs of...
Problem 10 Intro A new project is expected to generate annual sales of $130,000 and annual costs of $123,500. Annual depreciation attributable to the project is $60,000. The marginal tax rate is 34%. Part 1 IB Attempt 1/5 for 10 pts. What is the supplemental operating cash flow in each year of operation? No decimals Submit
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A 5-year project is expected to generate annual sales of 9,200 units at a price of $79 per unit and a variable cost of $50 per unit The equipment necessary for the project will cost $341,000 and will be depreciated on a straight line basis over the life of the project. Fixed costs are $ 205,000 per year and the tax rate is 34 percent. How sensitive is the operating cash flow to a $1 change in the per unit...
A five-year project is expected to generate annual revenues of $ 159,000, variable costs of $72,500, and fixed costs of $15,000. The annual depreciation is $19,500 and the tax rate is 21 percent. What is the annual operating cash flow?
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A 5-year project is expected to generate annual sales of 9,200 units at a price of $79 per unit and a variable cost of $50 per unit. The equipment necessary for the project will cost $341,000 and will be depreciated on a straight-line basis over the life of the project. Fixed costs are $205,000 per year and the tax rate is 34 percent. How sensitive is the operating cash flow to a $1 change in the per unit sales price?