A Project Has Annual Depreciation of $16,200,costs of $87,100,and Sales

question 4

Multiple Choice

A project has annual depreciation of $16,200,costs of $87,100,and sales of $123,000.The applicable tax rate is 40 percent.What is the operating cash flow according to the tax shield approach?

• A)$21,540
• B)$27,667
• C)$27,458
• D)$28,020
• E)$29,878

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