Taylor Inc A) $25,816
B) $27,175
C) $28,534
D) $29,960
E) $31,458

question 20

Multiple Choice

Taylor Inc.,the company you work for,is considering a new project whose data are shown below.What is the project's Year 1 cash flow? $\begin{array}{lr}\text { Sales revenues, each year } & \$ 62,500 \\\text { Depreciation } & \$ 8,000 \\\text { Other operating costs } & \$ 25,000 \\\text { Interest expense } & \$ 8,000 \\\text { Tax rate } & 35,0 \%\end{array}$

• A) $25,816
• B) $27,175
• C) $28,534
• D) $29,960
• E) $31,458

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Definitions:

Type Of Cost

A category within accounting that relates to the nature of expenses incurred, such as fixed, variable, direct, or indirect costs.

Plant Expansion

The process or activity of increasing the capacity or size of a manufacturing facility.

Customer Demand

The level of interest and need for products or services by consumers in the market at a given time.

Predicting Profits

The process of estimating the future financial profits of a business based on current data, trends, and analysis.