In Working on a Bid Project,you Have Determined That $318,000

question 46

Multiple Choice

In working on a bid project,you have determined that $318,000 of fixed assets are required.These assets will be depreciated straight-line to zero over the 6-year life of the project.Ignore bonus depreciation.The discount rate is 18 percent,the tax rate is 21 percent,and there is no interest expense.In addition,the annual cash costs will be $198,200.After considering all the project's other cash flows,you have determined that the required operating cash flow is $92,400.What is the required amount of annual sales revenue?

• A)$299,811.17
• B)$302,006.64
• C)$284,849.92
• D)$301,073.42
• E)$279,407.72

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