You have just landed an internship in the CFO's office of Hawkesworth Inc.Your first task is to estimate the Year 1 cash flow for a project with the following data.What is the Year 1 cash flow? $\begin{array}{c}
\begin{array}{lll}
\text {Sales revenues}\
\text {Depteciation}\
\text {Other operating costs}\
\text {Tax rate}
\end{array}
\begin{array}{r}
\$ 13,000 \
\$ 4,000 \
\$ 6,000 \
35.0 \%
\end{array}
\end{array}$

A)$5,950
B)$6,099
C)$6,251
D)$6,407
E)$6,568

Question

You have just landed an internship in the CFO's office of Hawkesworth Inc.Your first task is to estimate the Year 1 cash flow for a project with the following data.What is the Year 1 cash flow? $\begin{array}{c}
\begin{array}{lll}
\text {Sales revenues}\
\text {Depteciation}\
\text {Other operating costs}\
\text {Tax rate}
\end{array}
\begin{array}{r}
\$ 13,000 \
\$ 4,000 \
\$ 6,000 \
35.0 \%
\end{array}
\end{array}$

A)$5,950
B)$6,099
C)$6,251
D)$6,407
E)$6,568

Quizplus · Accepted Answer

Year 1 cash flow = Sales revenues - Depteciation - Other operating costs - Taxes= $13,000 - $4,000 - $6,000 - (35% * $13,000)= $13,000 - $4,000 - $6,000 - $4,550= $5,950

You Have Just Landed an Internship in the CFO's Office