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You Work for the Sing Oil Company, Which Is Considering

Question 54

Multiple Choice

You work for the Sing Oil Company, which is considering a new project whose data are shown below. What is the project's net operating cash flow for Year 1? Sales revenues, each year$55,000
Capital cost allowance$8,000
Cash operating costs$25,000
Interest expense$8,000
Tax rate35.0%


A) $21,185
B) $22,300
C) $24,586
D) $25,815

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