Bennett Co. has a potential new project that is expected to generate annual revenues of...
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Bennett Co. has a potential new project that is expected to generate annual revenues of $257,600, with variable costs of $142,000, and fixed costs of $59,800. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $22,000. The annual depreciation is $24,200 and the tax rate is 35 percent. What is the annual operating cash flow?
a) $80,000
b) $42,270
c) $44,740
d) $124,070
e) $175,412
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