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

question 98

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:

Lithium Hydroxide

A chemical compound with the formula LiOH, used primarily as a precursor in the production of lithium greases and batteries.

Strong Base

A substance that has a high capacity to accept protons (H+) and is completely or nearly completely ionized in aqueous solution.

Weak Base

A chemical species that partially accepts protons in solution, leading to an increase in the pH of the solution.

Calcium Hydroxide

A white crystalline compound with the formula Ca(OH)2, often used in the production of cement, plaster, and in water treatment.