Final answer:
The operating cash flow for the new project is $39,990, calculated by adding the non-cash charge of depreciation ($16,320) to the net income ($45,930) and subtracting the incremental taxes ($22,260).
Step-by-step explanation:
You have calculated the pro forma net income for a new project to be $45,930. The incremental taxes are $22,260 and the incremental depreciation is $16,320. To find the operating cash flow, we need to add back the non-cash charge of depreciation to the net income and then account for the taxes paid. The formula for operating cash flow (OCF) in this situation is:
OCF = Net Income + Depreciation - Taxes
Using the values provided:
OCF = $45,930 + $16,320 - $22,260
OCF = $39,990
Therefore, the operating cash flow for this project is $39,990.