Kurt's Kabinets Is Looking at a 4-Year Project That Will

question 47

Multiple Choice

Kurt's Kabinets is looking at a 4-year project that will require $76,000 in fixed assets and another $20,000 in net working capital.Annual sales are projected at $142,800 with costs of $79,600.The company uses straight-line depreciation to a zero book value over the life of the project.The tax rate is 35 percent.What is the annual operating cash flow for this project?

• A)$42,240
• B)$60,440
• C)$40,440
• D)$47,730
• E)$67,730

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