A project’s after-tax operating cash flow is $200,000 per year, with operating costs of $100,000 and depreciation of $20,000 per year. The firm’s marginal tax rate is 40%. What are the annual sales revenues from this project (rounded to the nearest dollar)? Select one: a. $200,000 b. $377,143 c. $394,286 d. $420,000 e. $640,000
A project’s after-tax operating cash flow is $200,000 per year, with operating costs of $100,000 and depreciation of $20,000 per year. The firm’s marginal tax rate is 40%. What are the annual sales revenues from this project (rounded to the nearest dollar)? Select one: a. $200,000 b. $377,143 c. $394,286 d. $420,000 e. $640,000
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 5P
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A project’s after-tax operating cash flow is $200,000 per year, with operating costs of $100,000 and
Select one:
a. $200,000
b. $377,143
c. $394,286
d. $420,000
e. $640,000
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