Fool Proof Software Is Considering a New Project Whose Data

question 72

Multiple Choice

Fool Proof Software is considering a new project whose data are shown below.The equipment has an economic life of 3 years,and is in the CCA class 10 (30%) .Revenues and cash operating costs are expected to be constant over the project's 3-year life.What is the net operating cash flow for Year 1? $\begin{array}{lr}\text { Equipment cost } & \$ 65,000 \\\text { Annual sales revenues } & \$ 60,000 \\\text { Annual cash operating costs } & \$ 25,000 \\\text { Tax rate } & 35.0 \%\end{array}$

• A)$26,162.50
• B)$28,770.00
• C)$30,359.25
• D)$25,275.50

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Definitions:

Reckless Indifference

A disregard for the safety or welfare of others, often seen as a form of negligence in legal contexts.

Lack of Belief

A state in which an individual does not hold certain convictions or convictions at all regarding a specific matter or in general.

Undue Influence

A situation where an individual is able to influence another person's decisions due to a special relationship, often leading to unfair outcomes.

Relationships Affected

Refers to how interpersonal, societal, or business connections are influenced by certain events or decisions.