A project is expected to generate annual revenues of $117700, with variable costs of $74,800, and fixed costs of $15,300 . The annual depreciation is $3,850 and the tax rate is 35 percent. What is the annual operating cash flow?

A project is expected to generate annual revenues of $117700, with variable costs of $74,800, and fixed costs of $15,300 . The annual depreciation is $3,850 and the tax rate is 35 percent. What is the annual operating cash flow?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 15EB: Project X costs $10,000 and will generate annual net cash inflows of $4,800 for five years. What is...

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Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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