Question

what is the annual operating cash flow (OCF) for a 10-year project that has annual sales of $520,000, its variable costs are 60% of sales and has annual fixed costs of $150,000. The project requires new equipment at a cost of $40,000

Answer 1

$62, 000

Step-by-step explanation:

Operating Cash Flow = Operating Income (revenue – cost of sales) + Depreciation