Problem:
Mike is evaluating a project that will increase annual sales by 138000 and annual costs by 94000. The project will initially require 110000 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.
Required:
Question: What is the operating cash flow for this project?
Note: Provide support for your rationale.