As a member of UA Corporation's financial staff, you must estimate the Year 1 cash flow for a proposed project with the following data. What is the Year 1 cash flow?
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Sales Revenues
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$42,500
|
|
Depreciation
|
$10,000
|
|
Other operating costs
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$17,000
|
|
Interest Expense
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$4,000
|
|
Tax rate
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35.0%
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a. $16,351
b. $17,212
c. $18,118
d. $19,071
e. $20,075