What is the annual ocf for the worst-case scenario

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Problem 1: Fort requires equipment costing $305,000. It is a 9-year project, and is depreciated straight line over its life. It will will generate sales of $177,000 annually with costs of $92,000. Both the sales and costs are accurate to +/-10 percent. What is the annual OCF for the worst-case scenario if the tax rate is 40 percent?

Multiple Choice

Option 1: $36,796
Option 2: $80,696
Option 3: $34,860
Option 4: $58,316
Option 5: $48,416

Reference no: EM132794086

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