You Have Just Landed an Internship in the CFO's Office

question 4

Multiple Choice

You have just landed an internship in the CFO's office of Hawkesworth Inc.Your first task is to estimate the Year 1 cash flow for a project with the following data.What is the Year 1 cash flow? $\begin{array}{lr}\text { Sales revenues } & \$ 13,000 \\\text { Depreciation } & \$ 4,000 \\\text { Other operating costs } & \$ 6,000 \\\text { Tax rate } & 25.0 \%\end{array}$

• A) $6,250
• B) $6,406
• C) $6,566
• D) $6,731
• E) $6,899

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Definitions:

Fraudulent Misrepresentation

A false statement of fact made by a person who knows, or should know, that it is false, and made with the intention of deceiving another.

Authority

The legal power or right given to an individual or body to make decisions, enforce rules, or govern.

Identity

The distinguishing character or personality of an individual; aspects that make up who someone is.

Warranty of Authority

A guarantee made by an agent that they have the authority from their principal to perform a certain act.