Camille's Café Is Considering a Project That Will Not Produce

Multiple Choice

Camille's Café is considering a project that will not produce any sales but will decrease annual cash expenses by $12,000.If the project is implemented,annual taxes will increase from $23,000 to $25,205,and depreciation will increase from $4,000 to $5,500 per year.What is the amount of the annual operating cash flow using the top-down approach?

A) $5,025
B) $9,795
C) $5,500
D) $12,000
E) $14,205