Zeta Software Is Considering a New Project Whose Data Are

question 29

Multiple Choice

Zeta Software is considering a new project whose data are shown below.The required equipment has a 3-year project life,after which it will be worthless,and it has a constant deduction rate over 3 years.Revenues and cash operating costs are expected to be constant over the project's 3-year life.What is the project's operating cash flow for Year 1?​​ $\begin{array}{ll}\text { Sales revenues } & \$ 25,000 \\\text { Capital cost allowance } & \$ 8,000 \\\text { Cash operating costs } & \$ 12,000 \\\text { Tax rate } & 35.0 \%\end{array}$ ​

• A)$29,196
• B)$29,945
• C)$30,712
• D)$31,500

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Definitions:

Autonomic Nervous System

The part of the nervous system that unconsciously controls the functions of internal organs and glands.

Rest-And-Digest

The rest-and-digest response, also known as the parasympathetic response, is a physiological reaction that decreases stress and energy expenditure by slowing the heart rate and increasing intestinal and gland activity.

Sympathetic Nervous System

Part of the autonomic nervous system that controls the body's responses to stress or emergency situations, often referred to as the "fight or flight" system.

Fight-Or-Flight

A physiological reaction that occurs in response to a perceived harmful event, attack, or threat to survival.