Answer:
Net operating cash flow= $44,520
Explanation:
Giving the following information:
A cost-cutting project will decrease costs by $64,500 a year. The annual depreciation will be $14,550 and the tax rate is 40 percent.
We need to calculate the operating cash flow:
Decrease costs= 64,500
Depreciation= (14,550)
Net savings= 49,950
Tax= (49,950*0.4)= (19,980)
Depreciation= 14,550
Net operating cash flow= 44,520
