Your Company, Q4 Inc

question 11

Multiple Choice

Your company, Q4 Inc., is considering a new project whose data are shown below. The required equipment has an economic year of 5 years, and has a CCA rate of 30% in class 10. Revenues and cash operating costs are expected to be constant over the project's 5-year operating life. What is the project's net operating cash flow during Year 2? Equipment cost$70,000
Sales revenues (each year) $50,000
Cash operating costs (each year) $25,000
Tax rate35.0%

• A) $16,213.00
• B) $20,067.50
• C) $22,497.50
• D) $18,863.50

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Definitions:

Product Service

A combination of tangible products and intangible services provided to fulfill the needs or desires of customers.

Arouse Interest

To stimulate curiosity or concern about a subject or issue.

Sales Promotion

Marketing activities designed to temporarily boost sales by offering customers incentives or discounts.

Short-Term Inducement

Short-term inducement refers to marketing strategies designed to boost immediate sales of a product or service, often through discounts, promotions, or special offers.