What is the annual operating cash flow

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Reference no: EM132020481

1. ABC Company is considering a new project. The project is expected to generate annual sales of $52,221, variable costs of $15,288, and fixed costs of $18,215. The depreciation expense each year is $5,658 and the tax rate is 34 percent. What is the annual operating cash flow?

2. What is the project's initial investment outlay based on the following information: The machinery could be purchased for $37,853. Shipping and installation costs would cost another $3,591. The project would require an initial investment in net working capital of $6,961.

Reference no: EM132020481

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