A 5-year project is expected to generate revenues of $100000,variable costs of $24000, and fixed costs of $16500. The annualdepreciation is $12000 and the tax rate is 35 percent. What is theannual operating cash flow?a. $43,275.b. $40,875.c. $43,000.d. $44,500.e. $42,875.

Conclusion:Thus, the correct answer is: e. $42,875.

Answered: A 5-year project is expected to…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 1BE: Average rate of return Determine the average rate of return for a project that is estimated to yield...

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Project Y cost $8,000 and will generate net cash inflows of $1,500 in year one, $2,000 in year two, $2,500 in year three, $3,000 in year four and $2,000 in year five. What is the NPV using 8% as the discount rate?
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A 5-year project is expected to generate revenues of $100000, variable costs of $24000, and fixed costs of $16500. The annual depreciation is $12000 and the tax rate is 35 percent. What is the annual operating cash flow? a. $43,275. b. $40,875. c. $43,000. d. $44,500. e. $42,875.