1

You work for Whittenerg Inc., which is considering a new project whose data are shown below. What is the projects Year 1 cash flow?

Project Data

Sales revenues, each year	$62,500
Depreciation	$8,000
Other operating costs	$25,000
Interest expense	$8,000
Tax rate	35.0%

Select one:

a. $25,816

b. $28,534

c. $27,175

d. $31,458

e. $29,960