Shelly's Boutique Is Evaluating a Project Which Will Increase Annual

question 350

Multiple Choice

Shelly's Boutique is evaluating a project which will increase annual sales by $70,000 and annual costs by $40,000. The project will initially require $100,000 in fixed assets which will be
Depreciated straight-line to a zero book value over the 5-year life of the project. The applicable tax
Rate is 34%. What is the operating cash flow for this project?

• A) $26,400
• B) $26,600
• C) $30,000
• D) $46,400
• E) $46,600

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Definitions:

Sociologist

A researcher specializing in the examination of human society's growth, framework, and operations.

Race

A social category, or social construction, that we treat as distinct on the basis of certain characteristics, some biological, that have been assigned social importance in the society.

Organization

An structured group of individuals with a specific purpose, such as a business, government body, or charity.

In-Groups

Social groups to which an individual feels a sense of belonging, loyalty, and identity.