The applicable tax rate is 34 percent what is the operating


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 and will be depreciated straight-line to a zero book value over the 10-year life of the project. The applicable tax rate is 34 percent. What is the operating cash flow for this project?

a) $18,300

b) $17,900

c) $19,200

d) $15,000

e) $21,300

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Finance Basics: The applicable tax rate is 34 percent what is the operating
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