A five-year project is expected to generate annual revenues of $210,000, variable costs of $90,000, and fixed costs of $22,000. The annual depreciation is $24,000 and the tax rate is 21 percent. What is the annual operating cash flow

Respuesta :

Answer:

$82,460

Explanation:

Annual OCF = (Revenue - Variable Cost - Fixed Cost)*(1-Tax Rate) + (Depreciation*Tax Rate)

(210,000-90,000-22,000)*(1-.21) + (24,000*.21)

(98,000*.79) + (24,000*.21)

77,420+5,040=

$82,460