Problem:
XYZ has a projected project to install a new press. The expected cash revenue is $175,000 per year. Expected yearly expenses are: Operatinf costs of $50,000; Rental of $17,000; Utilities of $20,500; and Depreciation of $10,000. The tax rate is 35%.
Question: What is the expected After-Tax Operating Cash Flow for the first year?
- $65,500
- $60,375
- $77,500
- $97,500.
Note: Explain all steps comprehensively.