SpaceTech Is Considering a New Project with the Following Projections

question 91

Multiple Choice

SpaceTech is considering a new project with the following projections for Year 2. Year 2 Projections
EBIT $400,000
Interest Expense $20,000
Depreciation Expense $40,000
Tax Rate 40%
Incremental Net Working
Capital Needs $200,000
Compute the operating cash flow for year 2.

• A) $80,000
• B) $180,000
• C) $240,000
• D) $280,000

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An entity formed for the purpose of carrying out commercial enterprise. Such organizations come in different forms including partnerships, corporations, and sole proprietorships.

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