General accounting Lennon Inc. is considering a new project whose data is asfollows: Sales revenues: $23,500, Depreciation: $1,000,Other operating costs: $14,500, and a tax rateof 45 %. What is the project's Year 1 cash flow to thenearest dollar?(a) $8,788(b) $9,325(c) $9,138(d) $9,363(e) $9,450.

Step 1: Definition of Operating Cash FlowOperating cash flow (OCF) represents the cash generated…

Answered: Lennon Inc. is considering a new…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 18EB: Garnette Corp is considering the purchase of a new machine that will cost $342,000 and provide the...

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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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Lennon Inc. is considering a new project whose data is as follows: Sales revenues: $23,500, Depreciation: $1,000, Other operating costs: $14,500, and a tax rate of 45 %. What is the project's Year 1 cash flow to the nearest dollar? (a) $8,788 (b) $9,325 (c) $9,138 (d) $9,363 (e) $9,450.