St. John's & Sons Sanitation Services is evaluating a project that will increase annual sales by $145,000 and annual cash costs by $94,000. The project will initially require $110,000 in fixed assets that will be depreciated straight-line to a zero book value over the 4-year life of the project. The applicable tax rate is 32 percent. What is the operating cash flow for this project?    a. $11,220 b. $29,920 c. $43,480 d. $46,620

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A: Note: As per the policy, we are supposed to solve one question at a time. Kindly repost the other…

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A: Step-by-Step Calculation:Step 1: Calculate Operating Income (EBIT) Operating Income…

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A: Annual sales revenue refers to the total amount received from selling the product. Operating cash…

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Q: A project will increase sales by $92,800 and cash expenses by $53,200. The project will cost $89,000…

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A: Here, Reduction in costs is $68,300Depreciation is $17,400Tax Rate is 21%

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A: NPV means net present value. It is the sum of all present values of future cash flows.

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A: We can determine the change in operating cash flow using the formula below:

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Q: 16. A 6-year project is expected to generate annual sales of 8,900 units at a price of $76 per unit…

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Q: Provide correct answer

A: Step 2: Step 3: Step 4:

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.