A Five-Year Project Is Expected to Generate Annual Revenues of $210,000

question 114

Multiple Choice

A five-year project is expected to generate annual revenues of $210,000, variable costs of $90,000, and fixed costs of $22,000.The annual depreciation is $24,000 and the tax rate is 21 percent.What is the annual operating cash flow?

• A)$71,500
• B)$117,855
• C)$72.430
• D)$41,080
• E)$60,580

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Definitions:

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances, resulting in unintended harm to another party.

Accountant

A professional who performs accounting functions such as audits or financial statement analysis according to established principles.

Embezzlement

The theft or misappropriation of funds or property entrusted to one's care by their employer or another party.

Audit

An inspection or examination of financial records to verify their accuracy and compliance with laws or standards.