You Work for Athens Inc

Multiple Choice

You work for Athens Inc., and you must estimate the Year 1 operating cash flow for a project with the following data. What is the Year 1 operating cash flow? Sales revenues$15,000
Capital cost allowance$4,000
Cash operating costs$6,000
Tax rate35.0%

A) $7,250
B) $7,431
C) $7,617
D) $7,807