Hello tutor please provide correct answer of this general accounting question Valley Corp is evaluating a project which will increase sales by$45,000. The project will cost $180,000 and will be depreciatedstraight-line to a zero book value over the 8-year life of theproject. The applicable tax rate is 30%. What is the operatingcash flow for this project?

Step 1: Define Operating Cash Flow (OCF)Operating Cash Flow (OCF) is the cash generated from a…

Answered: Valley Corp is evaluating 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 6P

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Valley Corp is evaluating a project which will increase sales by $45,000. The project will cost $180,000 and will be depreciated straight-line to a zero book value over the 8-year life of the project. The applicable tax rate is 30%. What is the operating cash flow for this project?