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Neko [114]
3 years ago
11

Holiday Shipping Express is considering a project that will require $28,000 in net working capital and $87,000 in fixed assets.

The project is expected to produce annual sales of $75,000 with associated cash costs of $57,000. The project has a 5-year life. The company uses straight-line depreciation to a zero book value over the life of the project. The tax rate is 30 percent. What is the operating cash flow for this project
Business
1 answer:
____ [38]3 years ago
7 0

Answer:

the operating cash flow is $17,820

Explanation:

The computation of the operating cash flow is shown below;

Annual depreciation = $87,000 ÷5

= $17,400

Now

Operating cash flow is

= (sales - cash costs - depreciation) × (1 - tax rate) + depreciation expense

= ($75,000 - $57,000 - $17,400) × (1 - 0.3) + $17,400

= $420 + $17,400

= $17,820

hence, the operating cash flow is $17,820

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Hi, since this is an academic writing activity, I simply provided suggestions and explanations of key terms.

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Other things the same, when the government spends more, the initial effect is that a. aggregate demand shifts right. b. aggregat
tatyana61 [14]

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Explanation:

Correct option: Aggregate demand shifts right.

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Answer: a. 1.42

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c) 3.89

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The formula is,

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It is calculated by multiplying DOL and DFL.

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Should you need any clarification just hit that comment button. Cheers.

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