Calculate the operating cash flow for Year 1
Wright's Warehouse has the following projections for Year 1 of a capital budgeting project.
Year 1 Incremental Projections:
Sales $200,000
Variable Costs $120,000
Fixed Costs $40,000
Depreciation Expense $20,000
Tax Rate 40%
A) $12,000
B) $32,000
C) $52,000
D) $72,000
Answer: B
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