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VR Corporation Has the Opportunity to Invest in a New

Question 26

Multiple Choice

VR Corporation has the opportunity to invest in a new project, the details of which are shown below.What is the Year 1 cash flow for the project?  Sales revenues, each year $42,500 Depreciation $10,000 Other operating costs $17,000 Interest expense $4,000 Tax rate 25.0%\begin{array} { l r } \text { Sales revenues, each year } & \$ 42,500 \\\text { Depreciation } & \$ 10,000 \\\text { Other operating costs } & \$ 17,000 \\\text { Interest expense } & \$ 4,000 \\\text { Tax rate } & 25.0 \%\end{array}


A) $17,614
B) $18,541
C) $19,517
D) $20,544
E) $21,625

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