Problemernies electrical is evaluating a project that will, Ask an Expert

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Problem:

Ernie's Electrical is evaluating a project that will increase sales by $39,000 and costs by $6,000. The project will initially cost $102,000 for fixed assets that will be depreciated straight-line to a zero book value over the 10-year life of the project. The applicable tax rate is 35 percent.

Required:

Question: What is the operating cash flow for this project?

$13,300
$21,450
$25,020
$11,550
$18,180

Note: Show all workings.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91175188

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