Question

Relevant Cash Flow Data for Year 2:
Sales revenues Year 2 $100,000
Cost of Goods Sold 20,000
Depreciation Expense 10,000
Tax Rate 40%

Based on the above cash flow data: What is the operating cash flow for year two of this capital budgeting project?

A.130,000

B.52,000

C.42,000

D. 78,000

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