Taylor inc., the company you work for, is considering a new project whose data are shown below. what is the project's year 1 cash flow? sales revenues, each year $62,500 depreciation $8,000 other operating costs $25,000 interest expense $8,000 tax rate 35.0%

a. $28,534

b. $27,175

c. $25,816

d. $29,960

b. $27,175

Explanation:

The computation of the projected year 1 cash flow is shown below:

Sales revenues, each year$62,500

Less: Other operating costs    ($25,000)

Less: Depreciation expense($8,000)

EBIT or Earning before interest and tax$29,500

Less: Tax at 35%($10,325)

EAT or earning after tax  $19,175

Add: depreciationexpense $8,000

Cash Flows$27,175

answer: e

explanation:

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know