You have just landed an internship in the CFO's office of
Hawkesworth Inc. Your first task is to estimate the Year 1 cash
flow for a project with the following data. What is the Year 1 cash
flow? (Hint: You will need to calculate the firm's After-tax
EBIT)
Sales revenues: $15,000
Depreciation: $5,000
Operating costs (Excludes depreciation): $6,000
Tax rate: 25.0%
A. $5,950
B. $6,099
C. $7,750
D. $8,000
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