A Project Is Expected to Increase a Firm's Sales Revenue

Multiple Choice

A project is expected to increase a firm's sales revenue by $50,000 annually, increase it cash expenses by $20,000 annually, and increase its depreciation by $15,000 annually. Given this information, what is the project's expected annual net cash flow? Use a 40% effective tax rate.

A) $24,000
B) $9,000
C) $21,000
D) $33,000