A Project Is Expected to Increase a Firm's Sales Revenue

question 29

Multiple Choice

A project is expected to increase a firm's sales revenue by $50,000 annually, increase it cash expenses by $20,000 annually, and increase its depreciation by $15,000 annually. Given this information, what is the project's expected annual net cash flow? Use a 40% effective tax rate.

• A)$24,000
• B)$9,000
• C)$21,000
• D)$33,000

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Definitions:

Quality Circles

Groups of workers who voluntarily meet on a regular basis to discuss and propose solutions to workplace issues with the aim of enhancing performance and efficiency.

Project Teams

Groups of individuals working together to achieve a specific project goal or task, often with complementary skills and roles.

Sensitive Information

Information that must be protected from unauthorized access to safeguard the privacy or security of an individual or organization.

Work-Life Balance

The equilibrium between professional responsibilities and personal life outside of work.