Calculate the operating cash flow


Question: Ernie's Electrical is evaluating a project which will increase sales by $50,000 and costs by $30,000. The project will cost 150,000 dollars & be depreciated straight-line to a zero book value over the ten year life of the project. The applicable tax rate is 34 percent. Calculate the operating cash flow for this project?

[A] $8,300

[B] $13,300

[C] $18,300

[D] $3,300

[E] $5,000

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Finance Basics: Calculate the operating cash flow
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