What is the operating cash flow for the project

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Problem 1: Kathy's Kabinets is looking at a project that will require $120,000 in fixed assets and another $20,000 in net working capital. The project is expected to produce sales of $154,000 with associated costs of $91,000. The project has a 4-year life. The company uses straight-line depreciation to a zero book value over the life of the project. The tax rate is 35%. What is the operating cash flow for this project?

Option a. $68,640

Option b. $44,300

Option c. $51,450

Option d. $43,600

Option e. $55,820

Reference no: EM132483676

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