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A project is expected to generate annual revenues of $127,300, with variable costs of $78,400, and...

A project is expected to generate annual revenues of $127,300, with variable costs of $78,400, and fixed costs of $18,900. The annual depreciation is $4,450 and the tax rate is 35 percent. What is the annual operating cash flow?

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Answer #1

OCF = (revenues-costs-depr)*(1-tax rate)+depr.

=(127300-78400-18900-4450)*(1-0.35)+4450

=21057.5

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