ABC Inc. is considering a project that will have annual sales of $36,750 and costs, including depreciation, of $21,500. Taxes will be $3,800 and the depreciation expense will be $2,125. An initial investment cash outlay of $1,750 is required for net working capital. What is the project's operating cash flow? a. $12,642 b. $9,700 c. $11,450 d. $7,575 e. $13,575 f. $9,325

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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18- ABC Inc. is considering a project that will have annual sales of $36,750 and costs,
including depreciation, of $21,500. Taxes will be $3,800 and the depreciation
expense will be $2,125. An initial investment cash outlay of $1,750 is required for
net working capital. What is the project's operating cash flow?

a. $12,642

b. $9,700
c. $11,450
d. $7,575
e. $13,575
f. $9,325

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