Multiple Choice A company is considering a new 6-year project that will have annual sales of $225,000 and costs of $140,000. The project will require fixed assets of $259,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, 11.52 percent, and 5.76 percent, respectively. The company has a tax rate of 34 percent. What is the operating cash flow for Year 2? $70,777 ○ $73,008 O $66,245
Multiple Choice A company is considering a new 6-year project that will have annual sales of $225,000 and costs of $140,000. The project will require fixed assets of $259,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, 11.52 percent, and 5.76 percent, respectively. The company has a tax rate of 34 percent. What is the operating cash flow for Year 2? $70,777 ○ $73,008 O $66,245
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section10.A: Mutually Exclusive Investments Having Unequal Lives
Problem 2P
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Raghubhai
![A company is considering a new 6-year project that will have annual sales of $225,000 and costs of $140,000. The project will require fixed assets of $259,000, which will be depreciated on a 5-year
MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, 11.52 percent, and 5.76 percent, respectively. The company has a tax rate of 34
percent. What is the operating cash flow for Year 2?
Multiple Choice
$70,777
○ $73,008
○ $66,245
о
$57,079
○ $84.279](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F438fd780-6294-480b-aaec-f03417ece9eb%2F26f2a4f4-9f89-4108-9c9b-c7f8c6df9100%2Fmov2mxb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A company is considering a new 6-year project that will have annual sales of $225,000 and costs of $140,000. The project will require fixed assets of $259,000, which will be depreciated on a 5-year
MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, 11.52 percent, and 5.76 percent, respectively. The company has a tax rate of 34
percent. What is the operating cash flow for Year 2?
Multiple Choice
$70,777
○ $73,008
○ $66,245
о
$57,079
○ $84.279
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