MBA 573 -Ernie’s Electrical is evaluating a project which will increase sales
8 – Ernie’s Electrical is evaluating a project which will increase sales by $50,000 and costs by $30,000. The project will cost $150,000 and will be depreciated straight-line to a zero book value over the 10-year life of the project. The applicable tax rate is 34 percent. What is the operating cash flow for this project?
a) $18,300
b) $17,900
c) $19,200
d) $15,000
e) $21,300
