Question

A project is expected to generate annual revenues of $129,300, with variable costs of $72,400, and fixed costs of $18,900. The annual depreciation is $4,950 and the tax rate is 21 percent. What is the annual operating cash flow

Answer 1

$42,950

Step-by-step explanation:

Data and Calculations

Revenue $129,300

Less variable costs ($72,400)

Less fixed costs ($18,900)

add depreciation $4,950

Operating Cash flow $42,950

Thus

The annual operating cash flow $42,950.