A five-year project is expected to generate annual revenues of $210,000, variable costs of $90,000, and fixed costs of $22,000. The annual depreciation is $24,000 and the tax rate is 21 percent. What is the annual operating cash flow? Multiple Choice $72,430 $41,080 $117,855 $60,580 $71,500
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Calculate the annual earnings before interest and taxes (EBIT): EBIT = Revenues - Variable Costs - Fixed Costs EBIT = $210,000 - $90,000 - $22,000 EBIT = $98,000 Show more…
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