Logan Hunting Has a Proposed Project That Will Generate Sales

question 99

Multiple Choice

Logan Hunting has a proposed project that will generate sales of 2,200 units annually at a selling price of $29.95 each.The fixed costs are $15,000 and the variable costs per unit are $6.95.The project requires $42,000 of fixed assets that will be depreciated on a straight-line basis to a zero book value over the four-year life of the project.The salvage value of the fixed assets is $5,500 and the tax rate is 21 percent.What is the operating cash flow for Year 4?

• A)$ 30,329
• B)$ 19,829
• C)$ 21,124
• D)$ 42,179
• E)$ 22,564

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Definitions:

Humanist

An advocate or follower of the principles of humanism, emphasizing the value and agency of human beings, individually and collectively, and generally preferring critical thinking and evidence over acceptance of dogma or superstition.

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A surgical procedure once used to treat mental disorders, involving the removal or destruction of part of the prefrontal cortex of the brain.

Drug Therapy

The treatment of disease or disorder through the administration of pharmaceutical drugs.

Behavior Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning and learning techniques.