Purchase Solution

# New Project's Operating Cash Flow

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You work for a company which is considering a new project whose data are shown below.

What is the project's operating cash flow for Year 1?

Sales revenues, each year = \$35,000
Depreciation= \$10,000
Other operating costs= \$17,000 (excluding depreciation)
Interest expense= \$4,000
Common stock dividends= \$2,000
Tax Rate= 35%

a) \$5,200
b) \$10,700
c) \$12,380
d) \$12,600
e) \$13,718
f) \$14,440
g) \$15,200.

##### Solution Summary

The solution computes new project's operating cash flow in a given scenario.

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