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Category > Business & Finance Posted 26 May 2017 My Price 8.00

sales of $85K, costs of $43K, and depreciation expense of $3K.

.)A proposed new project has projected sales of $85K, costs of $43K, and depreciation expense of $3K. 
All figures are annual figures. The tax rate is 35%. Calculate annual operating CF for this project. 
a. $27,300 b. $14,700 c. $42,000 d. $28,350

2.)For the prior problem, calculate how many dollars of tax expense are “saved” each year because of 
the depreciation expense.

 

Just question 2 please. I understand the first one but I don't quite understand the second question.

 

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Status NEW Posted 26 May 2017 05:05 PM My Price 8.00

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