Question

In: Finance

A 10-year project is expected to generate annual sales of $262100, variable costs of $40543, and...

A 10-year project is expected to generate annual sales of $262100, variable costs of $40543, and fixed costs of $49005. The annual depreciation is $23639 and the tax rate is 27 percent. What is the annual operating cash flow

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Solutions

Expert Solution

Ans 132345.49

SALES                       2,62,100
LESS VARAIBLE COST                          40,543
LESS FIXED COST                          49,005
LESS DEPRECIATION                          23,639
EARNING BEFORE TAX                       1,48,913
LESS TAX @ 27%                    40,206.51
EARNING AFTER TAX                 1,08,706.49
ADD DEPRECIATION                          23,639
OPERATING CASH FLOW                 1,32,345.49

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