Question

You have just landed an internship in the CFO's office of Hawkesworth Inc. Your first task...

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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