What is the operating cash flow for year

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Question - A company is considering a new 6-year project that will have annual sales of $240,000 and costs of $150,000. The project will require fixed assets of $269,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, 11.52 percent, and 5.76 percent, respectively. The company has a tax rate of 40 percent. What is the operating cash flow for Year 2?

Reference no: EM132777846

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