A Project Will Reduce Costs by $62,750 but Increase Depreciation

question 52

Multiple Choice

A project will reduce costs by $62,750 but increase depreciation by $14,812.What is the operating cash flow of this project ased on the tax shield approach if the tax rate is 34 percent?

• A)$41,415.00
• B)$31,639.08
• C)$38,211.19
• D)$42,006.20
• E)$46,451.08

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Definitions:

Mulch

A layer of material applied to the surface of soil to conserve moisture, improve fertility and health, reduce weed growth, and enhance visual appeal.

Close

Finalizing a transaction or agreement in sales, ensuring that the deal is completed and the product or service is sold.

Stalling Objection

An objection that delays the presentation or the sale.