Multiple Choice
In year 3 of project Gamma sales were $3,000,0000, cost of goods sold was $1,500,000, other cash costs were $400,000, depreciation was $600,000 and interest expense was $250,000.The company's marginal tax rate is 35%.Calculate operating cash flow for year 3 of project Gamma.
A) $925,000
B) $675,000
C) $500,000
D) $325,000
Correct Answer:
Verified
Correct Answer:
Verified
Q3: Blue Ocean Co.will purchase a machine that
Q6: Blue Ocean Co.already spent $85 000 on
Q7: Cash flows are the source of value.
Q9: Anderson-EOG Inc.is evaluating the construction of a
Q10: Kelvin Crackers will finance a new organic
Q11: Enviro Co.has estimated that a new building
Q46: Which of the following would cause free
Q52: Depreciation expenses affect capital budgeting analysis by
Q67: The calculation of differential cash flows over
Q89: The depreciation method used in capital budgeting