Anew project is expected to generate $600,000 in revenues, $200,000 in cash operating expenses, and depreciation expense of $100,000 in each year of its 10-year life. the corporation's tax rate is 40%. the project will require an increase in net working capital of $75,000 in year 0 and a decrease in net working capital of $75,000 in year ten. what is the operating cash flow from the project in year one?

Explanation:

OCF(yr1) = [(Revenue -Operating expenses-depreciation)*(1-tax)] +depreciation

Note: depreciation is added back because it is not an actual CASH OUTFLOW.

Revenues = 600,000

Operating expenses = 200,000

Depreciation per year = 100,000

Tax = 40% or 0.40 as a decimal

OCF = [(600,000 - 200,000 -100,000)](1-0.40) + 100,000

OCF = (300,000*0.60) +100,000

OCF = 180,000+ 100,000

OCF(Yr1) = $280,000

answer; /// i do believe that the correct answer is ; ///claude garamond;

there is no possible way mgk stands a chance with the greatest white rapper of all time. eminem killshots had more bars than rap devil and the reason mgk is doing all this is cause he not getting attention anymore til the release of rap devil and the disses he is putting on eminem. now rap devil was more fire than killshot so mgk might won the battle with rap devil but eminem won the war with killshot.