Jefferson & Sons is evaluating a project that will increase annual sales by $138,000 and...

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Finance

Jefferson & Sons is evaluating a project that will increase annual sales by $138,000 and annual costs by $94,000. The project will initially require $110,000 in fixed assets that will be depreciated straight-line to a zero-book value over the 4-year life of the project. The appropriate tax rate is 32 percent. What is the operating cash flow for this project?

A) $11,220

B) $29,920

C) $38,720

D) $46,480

E) $46,620

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