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(Solved): Bennett Company has a potential new project that is expected to generate annual revenues of $258, ...



Bennett Company has a potential new project that is expected to generate annual revenues of $258,500, with variable costs of $142,400, and fixed costs of $60,100. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $22,500. The annual depreciation is $24,400 and the tax rate is 21 percent. What is the annual operating cash flow?

Multiple Choice

$43,260

$125,860

$49,364

$176,216

$80,400



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The operating cash flow generally measures the net income by adjusting the expenses which are noncast like the depreciation and these also considered to be the cash generated from core operation of business.
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