Assistant to the CFO of Boulder Inc

question 30

Multiple Choice

assistant to the CFO of Boulder Inc., you must estimate the Year 1 cash flow for a project with the following data.What is the Year 1 cash flow?

• A)$5,950
• B)$6,099
• C)$6,251
• D)$6,407
• E)$6,568

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Definitions:

Responsibility Centre

A unit within an organization under the management's control, accountable for specific activities and associated costs, revenues, or investments.

Investment Centre

A business unit or segment which is responsible for its own revenues, expenses, and assets, and whose performance is measured by its return on investment.

Profit Centre

A profit centre is a distinct business unit or department within an organization that is responsible for generating its own revenue and managing its own costs to drive profitability.

Credit Sales

Sales made by a business where the amount is owed by the buyer for a period of time before payment is required.