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:

Probability

A measure of the likelihood that a particular event will occur, expressed as a number between 0 and 1.

Hypergeometric Probability

A statistical measure that calculates the likelihood of obtaining a specific number of successes from a finite population without replacement.

Discrete Random Variable

A variable that takes on a countable number of distinct values, often resulting from counting processes.

With Replacement

In sampling, "with replacement" means that once an item is selected, it's put back into the population before the next selection, making it possible to be chosen again.