1.)A proposed new project has projected sales of $85K, costs of $43K, and depreciation expense of $3K. All figures are annual figures. The tax rate is 35%. Calculate annual operating CF for this project.
a. $27,300
b. $14,700
c. $42,000
d. $28,350
2.)For the prior problem, calculate how many dollars of tax expense are "saved" each year because of the depreciation expense.