What is the annual operating cash flow for this project


Phone Home, Inc. is considering a new 6-year expansion project that requires an initial fixed asset investment of $5.876 million. The fixed asset will be depreciated straight-line to zero over its 6-year tax life, after which time it will be worthless. The project is estimated to generate $5,328,000 in annual sales, with costs of $2,131,200. The tax rate is 32 percent. What is the annual operating cash flow for this project?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: What is the annual operating cash flow for this project
Reference No:- TGS0728149

Expected delivery within 24 Hours