Bennett Company has a potential new project that is expected to generate annual revenues of $261,200, with variable costs of $143,600, and fixed costs of $61,000. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $24,000. The annual depreciation is $25,000 and the tax rate is 21 percent. What is the annual operating cash flow?
Bennett Company has a potential new project that is expected to generate annual revenues of $261,200, with variable costs of $143,600, and fixed costs of $61,000. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $24,000. The annual depreciation is $25,000 and the tax rate is 21 percent. What is the annual operating cash flow?
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
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![Bennett Company has a potential new project that is expected to
generate annual revenues of $261,200, with variable costs of $143,600,
and fixed costs of $61,000. To finance the new project, the company will
need to issue new debt that will have an annual interest expense of
$24,000. The annual depreciation is $25,000 and the tax rate is 21
percent. What is the annual operating cash flow?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9f57c6d1-ffb9-46dc-810e-7031280f51e6%2Ffc40b27f-01f8-4de0-817f-0626c748621c%2Fopvo4ge_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Bennett Company has a potential new project that is expected to
generate annual revenues of $261,200, with variable costs of $143,600,
and fixed costs of $61,000. To finance the new project, the company will
need to issue new debt that will have an annual interest expense of
$24,000. The annual depreciation is $25,000 and the tax rate is 21
percent. What is the annual operating cash flow?
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