Your New Employer, Freeman Software, Is Considering a New Project

question 68

Multiple Choice

Your new employer, Freeman Software, is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, and the allowed depreciation rates for such property are 33.33%, 44.45%, 14.81%, and 7.41% for Years 1 through 4. Revenues and other operating costs are expected to be constant over the project's 10-year expected life. What is the Year 1 cash flow?

• A) $30,333
• B) $31,849
• C) $33,442
• D) $35,114
• E) $36,869

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Definitions:

Binary Patterns

A method for representing information using two states or symbols, typically 0 and 1.

CPU

Central Processing Unit, the primary component of a computer that performs most of the processing inside a computer.

Pyruvate

A key intermediate in several metabolic pathways, particularly glycolysis, where glucose is broken down to produce energy.

Glucose

A simple sugar that is an important energy source in living organisms and is a component of many carbohydrates.