Please answer fast I will rate for you sure.... A project is expected to generate annual revenues of $117,700, with variable costs of $74,800, and fixed costs of $15,300. The annual depreciation is $3,850 and the tax rate is 21 percent. What is the annual operating cash flow?O $42,500O $15,225O $22,612O $34,519

Importance of operating cash flows Because cash flow indicators eliminate some accounting…

Answered: A project is expected to generate…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter10: Project Cash Flows And Risk

Section: Chapter Questions

Problem 6PROB

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Similar questions

Consolidated Aluminum is considering the purchase of a new machine that will cost $308,000 and provide the following cash flows over the next five years: $88,000, 92,000, $91,000, $72,000, and $71,000. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return in Excel, see Appendix C.
Garnette Corp is considering the purchase of a new machine that will cost $342,000 and provide the following cash flows over the next five years: $99,000, $88,000, $92,000. $87,000, and $72,000. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return in Excel. see Appendix C.
Redbird Company is considering a project with an initial investment of $265,000 in new equipment that will yield annual net cash flows of $45,800 each year over its seven-year life. The companys minimum required rate of return is 8%. What is the internal rate of return? Should Redbird accept the project based on IRR?
Determine cash flows Natural Foods Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The new garden tool is expected to generate additional annual sales of 5,000 units at 18 each. The new manufacturing equipment will cost 120,000 and is expected to have a 10-year life and a 17,000 residual value. Selling expenses related to the new product are expected to be 3% of sales revenue. The cost to manufacture the product includes the following on a per-unit basis: Determine the net cash flows for the first year of the project, Years 29, and for the last year of the project.

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A project is expected to generate annual revenues of $117,700, with variable costs of $74,800, and fixed costs of $15,300. The annual depreciation is $3,850 and the tax rate is 21 percent. What is the annual operating cash flow? O $42,500 O $15,225 O $22,612 O $34,519