Fool Proof Software Is Considering a New Project Whose Data

Multiple Choice

Fool Proof Software is considering a new project whose data are shown below.The equipment has an economic life of 3 years,and is in the CCA class 10 (30%) .Revenues and cash operating costs are expected to be constant over the project's 3-year life.What is the net operating cash flow for Year 1? $\begin{array}{lr}\text { Equipment cost } & \$ 65,000 \\\text { Annual sales revenues } & \$ 60,000 \\\text { Annual cash operating costs } & \$ 25,000 \\\text { Tax rate } & 35.0 \%\end{array}$

A) $26,162.50
B) $28,770.00
C) $30,359.25
D) $25,275.50