In your first job with TBL Inc. your task is to consider a new project whose data are shown below. What is the project's Year 1 cash flow? The annual operating cash flows of the project can be calculated as follows: OCF = {[Sales - Operating Costs]*(1-Tax Rate)} +  (Depreciation * Tax Rate) Sales revenues $225,250 Depreciation $78,847 Other operating costs $92,000 Tax rate 18%

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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In your first job with TBL Inc. your task is to consider a new project whose data are shown below. What is the project's Year 1 cash flow?

The annual operating cash flows of the project can be calculated as follows:

OCF = {[Sales - Operating Costs]*(1-Tax Rate)} +  (Depreciation * Tax Rate)

Sales revenues

$225,250

Depreciation

$78,847

Other operating costs

$92,000

Tax rate

18%

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