What is the opereting cash now for this project? Electrical is evaluating a project which will increase salesby $30,000. The project will cost $150,000 and will bedepreciated straight-line to a zero book value over the 10year line of the project. The applicable tax rate is 34%. Whatis the operating cash now for this project?1. A. $3,3002. B. $8,3003. C. $5,0004. D. $13,3005. E. 18,300

Step 1: Given Value for Calculation Sales Increase = si = $30,000Cost of project = c = $150,000Time…

Answered: Electrical is evaluating a project…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 22E

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What is the opereting cash now for this project? General accounting
Ernie's Electrical is evaluating a project that will increase sales by $48,000 and costs by $16,000. The project will initially cost $89,000 for fixed assets that will be depreciated straight-line to a zero book value over the 6-year life of the project. The applicable tax rate is 34 percent. What is the project’s annual operating cash flow? Group of answer choices $23,300.13 $21,450.87 $26,163.33 $22,406.67 $18,180.09
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A 7-year project is expected to provide annual sales of $221,000 with costs of $97,500. The equipment necessary for the project will cost $360,000 and will be depreciated on a straight-line method over the life of the project. You feel that both sales and costs are accurate to +/-15 percent. The tax rate is 21 percent. What is the annual operating cash flow for the worst-case scenario? es Multiple Choice $77,946 $44,504 0 $70,623 $129,329 $49.221
A project’s after-tax operating cash flow is $200,000 per year, with operating costs of $100,000 and depreciation of $20,000 per year. The firm’s marginal tax rate is 40%. What are the annual sales revenues from this project (rounded to the nearest dollar)? Select one: a. $200,000 b. $377,143 c. $394,286 d. $420,000 e. $640,000
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