As a member of UA Corporation's financial staff, you must estimate the Year 1 cash flow for a proposed project with the following data. What is the Year 1 cash flow? $\begin{array}{lr}
\text { Sales revenues, each year } & \$ 42,500 \
\text { Depreciation } & \$ 10,000 \
\text { Other operating costs } & \$ 17,000 \
\text { Interest expense } & \$ 4,000 \
\text { Tax rate } & 35.0 \%
\end{array}$

a. $\$ 16,351$
b. $\$ 17,212$
c. $\$ 18,118$
d. $\$ 19,071$
e. $\$ 20,075$

Question

As a member of UA Corporation's financial staff, you must estimate the Year 1 cash flow for a proposed project with the following data. What is the Year 1 cash flow? $\begin{array}{lr}
\text { Sales revenues, each year } & \$ 42,500 \
\text { Depreciation } & \$ 10,000 \
\text { Other operating costs } & \$ 17,000 \
\text { Interest expense } & \$ 4,000 \
\text { Tax rate } & 35.0 \%
\end{array}$

a. $\$ 16,351$
b. $\$ 17,212$
c. $\$ 18,118$
d. $\$ 19,071$
e. $\$ 20,075$

Quizplus · Accepted Answer

The Answer of As a member of UA Corporation's financial staff, you must estimate the Year 1 cash flow for a proposed project with the following data. What is the Year 1 cash flow? $\begin{array}{lr}
\text { Sales revenues, each year } & \$ 42,500 \
\text { Depreciation } & \$ 10,000 \
\text { Other operating costs } & \$ 17,000 \
\text { Interest expense } & \$ 4,000 \
\text { Tax rate } & 35.0 \%
\end{array}$

a. $\$ 16,351$
b. $\$ 17,212$
c. $\$ 18,118$
d. $\$ 19,071$
e. $\$ 20,075$

As a Member of UA Corporation's Financial Staff, You Must