What is amount of the annual sales revenue that is requied

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In working on a bid project you have determined that $245,000 of fixed assets will be required and that they will be depreciated straight line to zero over the 5 year life of the project. You have also determined that the discount rate should be 14.5 percent and the tax rate will be 35 percent. In addition, the annual cash costs will be $68,500. After considering all of the project's cash flows you have determined that that required operating cash flow is $68,700. What is the amount of the annual sales revenue that is required?

A. $142,018.27 B. $157,202.19 C. $152,311.89 D. $162,515.75 E. $147,807.69

Reference no: EM131334013

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