Fool Proof Software Is Considering a New Project Whose Data

question 56

Multiple Choice

Fool Proof Software is considering a new project whose data are shown below. The equipment has an economic life of 3 years, and is in the CCA class 10 (30%) . Revenues and cash operating costs are expected to be constant over the project's 3-year life. What is the net operating cash flow for Year 1? Equipment cost$65,000
Annual sales revenues$60,000
Annual cash operating costs$25,000
Tax rate35.0%

• A) $26,162.50
• B) $28,770.00
• C) $30,359.25
• D) $25,275.50