VR Corporation Has the Opportunity to Invest in a New

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? $\begin{array}{lr}\text { Sales revenues, each year } & \$ 42,500 \\\text { Depreciation } & \$ 10,000 \\\text { Other operating costs } & \$ 17,000 \\\text { Interest expense } & \$ 4,000 \\\text { Tax rate } & 35,0 \%\end{array}$

A) $16,351
B) $17,212
C) $18,118
D) $19,071
E) $20,075