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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Definitions:

Decline Stage

The decline stage is a phase in the product life cycle characterized by a decrease in sales and market share, often leading to the eventual withdrawal of the product from the market.

Product Mix

The variety of products a company produces or sells, encompassing diversity in types, sizes, and options.

Consumer Products

Goods produced for personal use by the general public.

Professional Products

Goods designed specifically for use by businesses and professionals, often characterized by higher quality and greater durability than consumer products.