Considering a new project


Your company, RMU Inc., is considering a new project whose data are shown below. What is the project's Year 1 cash flow?

Sales revenues..................$22,250

Depreciation ....................$ 8,000

Other operating costs ..........$12,000

Tax rate .......................... 35.0%

a. $10,039

b. $8,903

c. $9,746

d. $9,463

e. $9,179

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Finance Basics: Considering a new project
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