Computation of operating cash flows from capital project

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Reference no: EM1314207

Ernie's Electrical is evaluating a project which will increase sales by $50,000 and costs by $30,000. The project will cost $150,000 and be depreciated straight-line to a zero book value over the 10 year life of the project. The applicable tax rate is 34%. What is the operating cash flow for this project?

A. $3,300

B. $5,000

C. $8,300

D. $13,300

E. $18,300

Reference no: EM1314207

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