Question

Bennett Co. has a potential new project that is expected to

generate annual revenues of $260,000, with costs of $200,500. The
annual depreciation is $24,100 and the tax rate is 21 percent. An
initial

Answer 1

To determine the annual net income of the project, subtract the annual depreciation and the taxes from the revenues. The annual net income of the project is $18,260.

Step-by-step explanation:

The subject of this question is Business and it is a college level question.

To determine the annual net income of the project, we need to subtract the annual depreciation and the taxes from the revenues. The annual net income can be calculated using the formula:

Net Income = Revenues - Costs - Depreciation - Taxes

Substituting the given values, we have:

Net Income = $260,000 - $200,500 - $24,100 - ($260,000 - $200,500 - $24,100) x 0.21

Simplifying the equation, we find that the annual net income of the project is $18,260.

Therefore, the annual net income of the project is $18,260.