You work for Athens Inc.,and you must estimate the Year 1 operating cash flow for a project with the following data.What is the Year 1 operating cash flow? $\begin{array}{lc}
\text { Sales revenues } & \$ 15,000 \
\text { Capital cost allowance } & \$ 4,000 \
\text { Cash operating costs } & \$ 6,000 \
\text { Tax rate } & 35.0 \%
\end{array}$
A)$7,250
B)$7,431
C)$7,617
D)$7,807

Question

Quizplus · Accepted Answer

Year 1 operating cash flow = Sales revenues + Capital cost allowance - Cash operating costs - Taxes= 15,000 + 4,000 - 6,000 - (15,000 - 4,000) * 0.35= 15,000 + 4,000 - 6,000 - 3,850= $7,250

You Work for Athens Inc A)$7,250 B)$7,431 C)$7,617 D)$7,807

You Work for Athens Inc A)$7,250
B)$7,431
C)$7,617
D)$7,807