You Have Just Landed an Internship in the CFO's Office

question 59

Multiple Choice

You have just landed an internship in the CFO's office of Hawkesworth Inc.Your first task is to estimate the Year 1 cash flow for a project with the following data.What is the Year 1 cash flow? $\begin{array}{c}\begin{array}{lll}\text {Sales revenues}\\\text {Depteciation}\\\text {Other operating costs}\\\text {Tax rate}\end{array}\begin{array}{r}\$ 13,000 \\\$ 4,000 \\\$ 6,000 \\35.0 \%\end{array}\end{array}$

• A)$5,950
• B)$6,099
• C)$6,251
• D)$6,407
• E)$6,568

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Definitions:

Entrepreneur

An individual who organizes and operates a business venture, taking on greater than normal financial risks in order to do so.

Business Projects

Specified endeavors undertaken by businesses to achieve specific objectives, often within a set timeline and budget.

Private Owners

Individuals or entities who own private property or businesses and have control over their use and distribution.

Damages

Compensation claimed by or awarded to a person for injury or loss due to a breach of contract, negligence, or other unlawful act.