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A proposed expansion project is expected to increase sales by $84,000 and increase cash expenses...

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Finance

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A proposed expansion project is expected to increase sales by $84,000 and increase cash expenses by $41,000. The project will require $54,000 of fixed assets that will be depreciated using straight-line depreciation to a zero book value over the five-year life of the project. The store has a marginal tax rate of 21 percent. What is the operating cash flow of the project using the tax shield approach? Ignore bonus depreciation. Instruction: Enter your response rounded to two decimal places. 36,338 Tax Shield Approach OCF = (Sales - Costs)(1 - T) + (Depreciation x T) Question 6 0/2 pts A firm has sales of $899,000 and a profit margin of 6.9 percent. The annual depreciation expense is $86,000. What is the amount of the operating cash flow if the company has no long-term debt? Instruction: Enter your response rounded to two decimal places

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