Jefferson & Sons Is Evaluating a Project That Will Increase

Multiple Choice

Jefferson & Sons is evaluating a project that will increase annual sales by $145,000 and annual cash costs by $94,000.The project will initially require $110,000 in fixed assets that will be depreciated straight-line to a zero book value over the 4-year life of the project.The applicable tax rate is 32 percent.What is the operating cash flow for this project?

A) $11,220
B) $29,920
C) $43,480
D) $46,480
E) $46,620