What is project operating cash flow

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Burke's Corner currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its inventory. The tops would sell for $49 each with expected sales of 3,200 tops annually. By adding the fleece tops, management feels the company will sell an additional 150 pairs of jeans at $79 a pair and 220 fewer T-shirts at $18 each. The variable cost per unit is $36 on the jeans, $7 on the T-shirts, and $21 on the fleece tops. The project’s depreciation expense is $23,000 a year and the fixed costs are $21,000 annually. The tax rate is 34 percent. What is the project's operating cash flow?

Reference no: EM131328661

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