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# Annual Operating Cash Flow

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Scenario One: A 5-year project is expected to generate revenues of \$94800, variable costs of \$35200, and fixed costs of \$14600. The annual depreciation is \$5000 and the tax rate is 33 percent. What is the annual operating cash flow?
\$18,075
\$32,980
\$19,700
\$31,800
\$34,500

Scenario Two: Junior's has a new project in mind that will increase accounts receivable by \$24500, increase accounts payable by \$23000, increase fixed assets by \$37000, and decrease inventory by \$6000. What is the amount the firm should use as the initial cash flow attributable to net working capital when it analyzes this project?
\$4,500
\$12,600
\$3,200
\$28,900
\$6,000

#### Solution Preview

A 5-year project is expected to generate revenues of \$94800, variable costs of \$35200, and fixed costs of \$14600. The annual depreciation is \$5000 and the tax rate is 33 percent. ...

#### Solution Summary

This brief and concise solution, illustrates the required calculations needed to determine the annual operating cash flows for two different scenarios.

\$2.19