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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.
Transcribed Image Text: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.
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