What is operating cash flow

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Reference no: EM132006140

ABC Company has a proposed project that will generate sales of 276 units annually at a selling price of $283 each. The fixed costs are $6,230 and the variable costs per unit are $113. The project requires $10,975 of equipment that will be depreciated on a straight-line basis to a zero book value over the 5-year life of the project. That is, depreciation each year is $10,975/5. The tax rate is 35 percent. What is the operating cash flow?

Reference no: EM132006140

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