As a Member of Midwest Corporation's Financial Staff, You Must

Multiple Choice

As a member of Midwest Corporation's financial staff, you must estimate the Year 1 operating cash flow for a proposed project with the following data. What is the Year 1 net operating cash flow? Sales revenues, each year$35,000
Capital cost allowance$10,000
Cash operating costs$17,000
Interest expense$4,000
Tax rate35.0%

A) $12,380
B) $13,032
C) $14,440
D) $15,200