The Java House Is Considering a Project That Will Produce

question 11

Multiple Choice

The Java House is considering a project that will produce sales of $47,500 and increase cash expenses by $22,500.If the project is implemented,taxes will increase by $7,600.The additional depreciation expense will be $10,100.An initial cash outlay of $7,300 is required for net working capital.What is the amount of the operating cash flow using the top-down approach?

• A)$10,100
• B)$20,200
• C)$18,200
• D)$17,400
• E)$14,800

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