What operating cash flow for project for jefferson and sons

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Reference no: EM132963122

Problem 1: Jefferson & Sons is evaluating a project that will increase annual sales by $198,600 and annual cash costs by $94,500. The project will initially require $187,000 in fixed assets that will be depreciated straight-line to a zero book value over the four-year life of the project. No bonus depreciation will be taken. The applicable tax rate is 22 percent. What is the operating cash flow for this project?

Multiple Choice

Option 1: $89,920
Option 2: $46,620
Option 3: $91,483
Option 4: $86,480
Option 5: $97,851

Reference no: EM132963122

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