Sam's Sports Bar wants to expand their facility. The expansion will require $330,000 in building improvements, which will be depreciated on a straight-line basis over a 20-year period. The expanded area is expected to generate $120,000 in additional sales of which 60 percent is variable cost. The fixed costs are $10,000 annually and the tax rate is 35 percent. What is the operating cash flow for the first year of this project? a.
$40,200 b.
$36,895 c.
$30,475 d.
$24,700 e.
$27,025
