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:

Graph

A diagram representing mathematical relationships between variables, typically plotted with an x-axis and a y-axis.

\(f ( x )\)

Denotes a function of x, illustrating the relationship between x and its induced value.

Graph

A visual representation of data or functions on a two-dimensional plane, where the relationship between variables can be visually interpreted.

Function

A relationship involving various inputs and permissible outputs, with the premise that each input is connected to exactly one output.