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

Multiple Choice

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? $\begin{array}{lr}\text { Sales revenues } & \$ 13,000 \\\text { Depreciation } & \$ 4,000 \\\text { Other operating costs } & \$ 6,000 \\\text { Tax rate } & 25.0 \%\end{array}$

A) $6,250
B) $6,406
C) $6,566
D) $6,731
E) $6,899