Question

A cost-cutting project will decrease costs by $37,400 a year. The annual depreciation on the project's fixed assets will be $4,700 and the tax rate is 34 percent. What is the amount of the change in the firm's operating cash flow resulting from this project?

Answer 1

What is the amount of the change in the firm's operating cash flow resulting from this project?

26018

Step-by-step explanation:

Change in operating cash flow =37000*(1-0,34)+(4700x.34)

=24420 + 1598

=26018