Marie's Fashions is considering a project that will require $30,000 in net working capital and $88,000 in fixed assets. The project is expected to produce annual sales of $91,000 with associated costs of $51,000. The project has a 5-year life. The company uses straight-line depreciation to a zero book value over the life of the project. The tax rate is 30 percent. Calculate operating cash flow. (Do not include the dollar signs ($). Round your answers to the nearest whole dollar amount. (e.g., 32)) Your Answer:

Marie's Fashions is considering a project that will require $30,000 in net working capital and $88,000 in fixed assets. The project is expected to produce annual sales of $91,000 with associated costs of $51,000. The project has a 5-year life. The company uses straight-line depreciation to a zero book value over the life of the project. The tax rate is 30 percent. Calculate operating cash flow. (Do not include the dollar signs ($). Round your answers to the nearest whole dollar amount. (e.g., 32)) Your Answer:

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 6P

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