Your Local Athletic Center Is Planning a $1

question 70

Multiple Choice

Your local athletic center is planning a $1.23 million expansion to its current facility.This cost will be depreciated on a straight-line basis over a 20-year period.The expanded area is expected to generate $524,000 in additional annual sales.Variable costs are 48 percent of sales,the annual fixed costs are $79,400,and the tax rate is 35 percent.What is the operating cash flow for the first year of this project?

• A)$118,336
• B)$122,509
• C)$147,027
• D)$166,667
• E)$219,323

---

Definitions:

Median

The middle value in a sorted, ascending or descending, list of numbers.

Frequency Distribution

A statistical representation showing how often various outcomes occur within a set of data, often displayed as a table or graph.

Data Set

A collection of related data points that are treated as a single unit for processing and analysis.

Frequency Distribution

a statistical representation showing the number of observations within a given interval.