What is annual operating cash flow

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1. A 12-year project is expected to generate annual sales of $254,432, variable costs of $32,782, and fixed costs of $54,276. The annual depreciation is $18,674 and the tax rate is 39 percent. What is the annual operating cash flow?

2. The risk-free rate is 4.4%, the market risk premium is 7.6%, and the stock’s beta is 0.92. What is the required rate of return on the stock, E(Ri)?

Use the CAPM equation.

Reference no: EM131958776

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