What is the second-year incremental operating cash flow

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Reference no: EM13879377

Aspen inc. is evaluating a project that will increase annual sales by $138,000 per year with additional operating expenses and costs (excluding depreciation and interest) that will amount to 40% of the additional sales for the next 5 years. The project will initially require $110,000 in fixed assets that will be depreciated under MARC, using a 5-year recovery period (our handout says 32% recovery). The applicable tax rate is 35%. What is the second-year incremental operating cash flow from this project?

Reference no: EM13879377

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