The Wet Corp

question 76

Multiple Choice

The Wet Corp.has an investment project that will reduce expenses by $15,000 per year for 3 years.The project's cost is $20,000,with a 20% CCA rate.Using a 40% tax rate,calculate the net operating cash flow at the end of year 1?

• A) $-15,000
• B) $+11,000
• C) $+9,000
• D) $+9,800

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Definitions:

Time Instrument

A type of draft that allows the payee to collect payment only at a specific time in the future.

Expressed Due Date

The specific date mentioned in a contract or agreement by which a task must be completed or a payment must be made.

Overdue

Referring to a payment, task, or other obligation not completed or submitted by its expected or agreed-upon deadline.

Fraud

A deliberate deception intended to secure an unfair or unlawful gain.