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1 November, 07:35

A cost-cutting project will decrease costs by $37,400 a year. The annual depreciation on the project's fixed assets will be $4,700 and the tax rate is 34 percent. What is the amount of the change in the firm's operating cash flow resulting from this project?

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  1. 1 November, 07:42
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    What is the amount of the change in the firm's operating cash flow resulting from this project?

    26018

    Explanation:

    Change in operating cash flow = 37000 * (1-0,34) + (4700x. 34)

    =24420 + 1598

    =26018
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