You Work for Alberta Corp A)$72,500
B)$117,431
C)$127,617
D)$85,000

question 30

Multiple Choice

You work for Alberta Corp.and you must estimate the Year 1 operating cash flow for a project with the following data.What is the Year 1 operating cash flow? $\begin{array}{ll}\text { Sales revenues } & \$ 150,000 \\\text { Capital cost all owance } & \$ 25,000 \\\text { Cash operating costs } & \$ 50,000 \\\text { Tax rate } & 20.0 \%\end{array}$

• A)$72,500
• B)$117,431
• C)$127,617
• D)$85,000

---

Definitions:

Surplus

In economic terms, a situation where the quantity of a good or service available exceeds the quantity demanded at a specific price.

Binding Price Floor

A government or regulatory-imposed price control set above the equilibrium price, which prevents the market price from falling below that level.

Potential Sellers

Potential sellers are individuals or entities that may be willing to sell goods or services under the right conditions.

Price Floor

A government-imposed minimum price charged on a product, below which it cannot be sold to prevent market prices from falling too low.