A project has annual depreciation of $24,300, costs of $100,100, and sales of $147,500. The applicable tax rate is 34 percent. What is the operating cash flow?

Question

A project has annual depreciation of $24,300, costs of $100,100, and sales of $147,500. The applicable tax rate is 34 percent. What is the operating cash flow?
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Solution 1

To calculate the operating cash flow (OCF), you can use the formula:

OCF = (Sales - Costs - Depreciation) * (1 - Tax Rate) + (Depreciation)

Here are the steps to calculate it:

  1. Subtract the costs and depreciation from the sales: $147,500 - $100,100 - $24,300 = $23,100. This is the earnings befo Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

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