Your Company,Q4 Inc A)$16,21300
B)$20,067

question 12

Multiple Choice

Your company,Q4 Inc.,is considering a new project whose data are shown below.The required equipment has an economic year of 5 years,and has a CCA rate of 30% in class 10.Revenues and cash operating costs are expected to be constant over the project's 5-year operating life.What is the project's net operating cash flow during Year 2? $\begin{array}{lr}\text { Equipment cost } & \$ 70,000 \\\text { Sales revenues (each year) } & \$ 50,000 \\\text { Cash operating costs (each year) } & \$ 25,000 \\\text { Tax rate } & 35.0 \%\end{array}$

• A)$16,213.00
• B)$20,067.50
• C)$22,497.50
• D)$18,863.50

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Definitions:

Alternative

A course of action or strategy that may be chosen by a decision maker.

Uncertainty

Uncertainty pertains to the degree of unknown aspects in situations, events, or outcomes, often quantified in risk assessments and decision-making processes.

Decision Tree Analysis

A graphical tool that helps in making decisions by mapping out different courses of action and their possible outcomes.

Decision Alternatives

Choices available to decision-makers in a given decision-making scenario.