A project is expected to generate annual revenues of $125, 700, with variable costs of $77,800, and fixed costs of $18,300. The annual depreciation is $4, 350 and the tax rate is 25percent. What is the annual operating cash flow?

Annual operating cash flows =( Annual revenues - variable cost - fixed cost ) (1-Tax rate)+…

Answered: A project is expected to generate…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A proposed new project has projected sales of $244,500, costs of $123,100, and depreciation of $15,100. The tax rate is 21%. What is the operating cash flow of this project?
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You are analyzing a project and have developed the following estimates. The depreciation is $72,000 a year and the tax rate is 35 percent. What is the operating cash flow? Unit Sales 2,900 $220 Price per Unit Variable Costs per Unit $160 Fixed Costs $28,500 a. $119,775 b. $138,275 c. $153,075 d. $164,775
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You are analyzing a project and have developed the following estimates. The depreciation is $47,900 a year and the tax rate is 21 percent. What is the worst-case operating cash flow? Unit sales Sales price per unit Variable cost per unit Fixed costs -$2,545 $11,145 $88,855 $27,556 O $63,937 Base-Case Lower Bound Upper Bound 9,800 12,800 $34 $24 $ 9,200 11,300 $ 39 $25 $ 9,700 $44 $26 $ 10,200
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A project is expected to generate annual revenues of $125, 700, with variable costs of $ 77,800, and fixed costs of $18,300. The annual depreciation is $4, 350 and the tax rate is 25 percent. What is the annual operating cash flow?