Hello tutor solve this question accounting Omega Industries evaluates a project with $60,000 increased annualrevenue. The project requires equipment costing $360,000,depreciated straight-line over 6 years. If the tax rate is 25%, what'sthe OCF?a. $42,000b. $60,000c. $75,000d. $87,000

Step 1:Operating cash flow is the amount received from the core activities of the business…

Answered: Omega Industries evaluates a project…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 5P

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Omega Industries evaluates a project with $60,000 increased annual revenue. The project requires equipment costing $360,000, depreciated straight-line over 6 years. If the tax rate is 25%, what's the OCF? a. $42,000 b. $60,000 c. $75,000 d. $87,000