The applicable tax rate is 32 percent what is the operating


Jefferson & Sons is evaluating a project that will increase annual sales by $145,000 and annual cash costs by $94,000. The project will initially require $110,000 in fixed assets that will be depreciated straight-line to a zero book value over the 4-year life of the project. The applicable tax rate is 32 percent. What is the operating cash flow for this project?

A.
$11,220
B.
$29,920
C.
$43,480
D.
$46,480

 

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Finance Basics: The applicable tax rate is 32 percent what is the operating
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