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Kurt's Kabinets: Calculate the operating cash flow for a project

Kurt's Kabinets is looking at a project that will require $80,000 in fixed assets and another $20,000 in net working capital. The project is expected to produce sales of $110,000 with associated costs of $70,000. The project has a 4-year life. The company uses straight-line depreciation to a zero book value over the life of the project. The tax rate is 35%. What is the operating cash flow for this project?

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Operating cash flow
Sales $110,000
Less: Costs $(70,000)
Less: ...

Solution Summary

The solution calculates the operating cash flow for a project for Kurt's Kabinets.

$2.19