Ben's Border Café Is Considering a Project Which Will Produce

question 2

Multiple Choice

Ben's Border Café is considering a project which will produce sales of €16,000 and increase cash expenses by €10,000.If the project is implemented, taxes will increase from €23,000 to €24,500
And depreciation will increase from €4,000 to €5,500.What is the amount of the operating cash
flow using the top-down approach?

• A)€4,000
• B)€4,500
• C)€6,000
• D)€7,500
• E)€8,500

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