Your Company,Q4 Inc A)$16,21300
B)$20,067

Multiple Choice

Your company,Q4 Inc.,is considering a new project whose data are shown below.The required equipment has an economic year of 5 years,and has a CCA rate of 30% in class 10.Revenues and cash operating costs are expected to be constant over the project's 5-year operating life.What is the project's net operating cash flow during Year 2? $\begin{array}{lr}\text { Equipment cost } & \$ 70,000 \\\text { Sales revenues (each year) } & \$ 50,000 \\\text { Cash operating costs (each year) } & \$ 25,000 \\\text { Tax rate } & 35.0 \%\end{array}$

A) $16,213.00
B) $20,067.50
C) $22,497.50
D) $18,863.50