Your company,Omega Corporation,is considering a new project that you must analyze.Based on the following data,what is the project's Year 1 operating cash flow? $\begin{array}{lll}
\text { Sales revenues } & \$ 25,000 & \
\text { Capital cost allowance } & & \$ 8,000 \
\text { Cash operating costs } & \$ 12,000 & \
\text { Tax rate } & & 35.0 \%
\end{array}$
A)$10,585
B)$10,913
C)$11,250
D)$11,588

Question

Quizplus · Accepted Answer

Operating cash flow is calculated as: (Sales revenues - Cash operating costs) * (1 - Tax rate) + Capital cost allowance. Substituting the given values: ($25,000 - $12,000) * (1 - 0.35) + $8,000 = $11,250.

Your Company,Omega Corporation,is Considering a New Project That You Must