What is the operating cash flow for this project

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Question - The Clothing Co. is looking at a project that will require $40,000 in net working capital initially, with no change in NWC over the life of the project. It will also require $100,000 in fixed assets. The project is expected to produce annual sales of $90,000 with associated costs of $60,000. The asset has a 10-year life. The company uses straight-line depreciation to a zero book value over the life of the project. The tax rate is 35 percent. What is the operating cash flow for this project?

Reference no: EM133177950

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