Ernie's Electrical Is Evaluating a Project Which Will Increase Sales

Multiple Choice

Ernie's Electrical is evaluating a project which will increase sales by $50,000 and costs by $30,000. The project will cost $150,000 and will be depreciated straight-line to a zero book value over the 10 year life of the project. The applicable tax rate is 34%. What is the operating cash flow for this project?

A) $3,300
B) $5,000
C) $8,300
D) $13,300
E) $18,300