As a Member of UA Corporation's Financial Staff, You Must

Short Answer

As a member of UA Corporation's financial staff, you must estimate the Year 1 cash flow for a proposed project with the following data. What is the Year 1 cash flow? $\begin{array}{lr}\text { Sales revenues, each year } & \$ 42,500 \\\text { Depreciation } & \$ 10,000 \\\text { Other operating costs } & \$ 17,000 \\\text { Interest expense } & \$ 4,000 \\\text { Tax rate } & 35.0 \%\end{array}$

a. $\$ 16,351$
b. $\$ 17,212$
c. $\$ 18,118$
d. $\$ 19,071$
e. $\$ 20,075$