What is projects annual operating cash flow

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Reference no: EM13813824

Spears’ project is expected to generate net annual sales revenue of $6,000,000 at the end of each of the next four years. The new equipment costs a total amount of $4,000,000. Total operating costs (fixed and variable costs excluding depreciation) are expected to equal $4,000,000. Suppose the firm uses the straight-line method to depreciate the equipment over four years and the firm’s tax rate is 40%. What is the project’s annual operating cash flow? Please show work

Reference no: EM13813824

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