A company estimates that it will have $402,330 in sales and $90,850 in operating costs annually.  Assume a tax rate of 32.97% and a CCA rate of 27.00%.  If the undepreciated capital cost (UCC) balance at the start of the year is $355,010, what is the year's project cash flows?  Assume no change in non-cash working capital and no purchase or sale of long-term assets during the year. Options   $222,359   $228,368   $234,378   $240,388   $246,397

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
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A company estimates that it will have $402,330 in sales and $90,850 in operating costs annually.  Assume a tax rate of 32.97% and a CCA rate of 27.00%.  If the undepreciated capital cost (UCC) balance at the start of the year is $355,010, what is the year's project cash flows?  Assume no change in non-cash working capital and no purchase or sale of long-term assets during the year.

Options

 

$222,359

 

$228,368

 

$234,378

 

$240,388

 

$246,397

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