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?

Sales revenues $13,000

Depreciation $4,000

Other operating costs $6,000

Tax rate 35.0%

a. $5,950
b. $6,099
c. $6,251
d. $6,407
e. $6,568

Answer

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