Marie's Fashions Is Considering a Project That Will Require $28,000

question 50

Multiple Choice

Marie's Fashions is considering a project that will require $28,000 in net working capital and $87,000 in fixed assets.The project is expected to produce annual sales of $75,000 with associated cash costs of $57,000.The project has a 5-year life.The company uses straight-line depreciation to a zero book value over the life of the project.The tax rate is 30 percent.What is the operating cash flow for this project?

• A)-$1,520
• B)-$580
• C)$420
• D)$15,680
• E)$17,820

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Definitions:

Self-sacrificing

The act of giving up one's own needs, desires, or wellbeing for the benefit of others or for a greater cause.

Agape

Love that is altruistic and self-sacrificing and is directed toward all humankind.

Obsessiveness

The condition of being excessively preoccupied with a single thought or idea, often leading to compulsive behavior.

Jealousy

An emotional state that arises from perceived threats to a valued relationship or position and can lead to feelings of insecurity and fear.