johny trout is planning a $540,000 expansion to its lake. this cost will be depreciated on...

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johny trout is planning a $540,000 expansion to its lake. this costwill be depreciated on a straight line basis over a 10 year period.the lake is expected to generate $489,000 in additional annualsales. every year fixed costs are $129,400, with variable costs of$46% of sales, and a tax rate is 34%. what is the operating cashflow for the third year of this project?
a. 106,906.65
b. $107,235.60

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3.9 Ratings (365 Votes)

First list down the information provided inquestionCost of Expansion 540000Additional Annual Sales 489000Variable Cost 46 of sales ie 224940Annual Fixed Cost See Answer

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johny trout is planning a $540,000 expansion to its lake. this costwill be depreciated on a straight line basis over a 10 year period.the lake is expected to generate $489,000 in additional annualsales. every year fixed costs are $129,400, with variable costs of$46% of sales, and a tax rate is 34%. what is the operating cashflow for the third year of this project?a. 106,906.65b. $107,235.60