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What is the annual operating cash flow for this project

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Reference no: EM131585190

Merrimack Gadgets, Inc. is evaluating a project that will increase sales by $1,250,000 and costs by $749,000. The project will initially cost $3,760,000 for fixed assets that will be depreciated straight-line to a zero book value over the 10-year life of the project. The applicable tax rate is 34 percent. What is the annual operating cash flow for this project?

A.$465,548

B.$474,270

C,$443,280

D.$441,600

E.$458,500

Reference no: EM131585190

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