A new efficiency project will reduce annual costs by $45,000. The annual depreciation on the project's equipment will be $5,500 and the tax rate is 30 percent. What is the amount of the change in the firm's operating cash flow resulting from this project? A. $35,000 B. $31,500 C. $37,000 D. $36,900 E. $32,650

A new efficiency project will reduce annual costs by $45,000. The annual depreciation on the project's equipment will be $5,500 and the tax rate is 30 percent. What is the amount of the change in the firm's operating cash flow resulting from this project? A. $35,000 B. $31,500 C. $37,000 D. $36,900 E. $32,650

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 7P: Your division is considering two investment projects, each of which requires an up-front expenditure...

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