A cost-cutting project will decrease costs by $68,300 a year. The annual depreciation will be $17,400 and the tax rate is 21 percent. What is the ope cash flow for this project? Multiple Choice о о о O $17,815 $38,305 $44,395 $57,611

A cost-cutting project will decrease costs by $68,300 a year. The annual depreciation will be $17,400 and the tax rate is 21 percent. What is the ope cash flow for this project? Multiple Choice о о о O $17,815 $38,305 $44,395 $57,611

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Description: A cost-cutting project will decrease costs by $68,300 a year. The annualdepreciation will be $17,400 and the tax rate is 21 percent. What is the operatingcash flow for this project?Multiple Choiceоооо$17,815$38,305$44,395$57,611$29,995

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 5P

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Similar questions

Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year for 5 years. Project L costs $25,000 and is expected to produce cash flows of $7,400 per year for 5 years. Calculate the two projects’ NPVs, IRRs, MIRRs, and PIs, assuming a cost of capital of 12%. Which project would be selected, assuming they are mutually exclusive, using each ranking method? Which should actually be selected?
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6 You are analyzing a project and have developed the following estimates. The depreciation is $1,020 a year and the tax rate is 35 percent. What is the worst-case operating cash flow? Unit sales Sales price per unit Variable cost per unit Fixed costs Multiple Choice $660.50 -$110.50 $909.50 $209.00 Base-Case Lower Bound 1,300 $ $ 19 12 $1,400 1,150. 16 10 $1,350 $ $
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