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Lennon Inc. is considering a new project whose data is as follows: Sales revenues: $23,500, Depreciation: $1,000, Other operating costs: $14,500, and a tax rate of 45%. What is the project's Year 1 cash flow to the nearest dollar? (a) $8,788 (b) $9,325 (c) $9,138 (d) $9,363 (e) $9,450.

Lennon Inc. is considering a new project whose data is as follows: Sales revenues: $23,500, Depreciation: $1,000, Other operating costs: $14,500, and a tax rate of 45%. What is the project's Year 1 cash flow to the nearest dollar? (a) $8,788 (b) $9,325 (c) $9,138 (d) $9,363 (e) $9,450.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lennon Inc. is considering a new project whose data is as follows: Sales revenues: $23,500, Depreciation: $1,000, Other operating costs: $14,500, and a tax rate of 45%. What is the project's Year 1 cash flow to the nearest dollar? (a) $8,788 (b) $9,325 (c) $9,138 (d) $9,363 (e) $9,450.
Transcribed Image Text:Lennon Inc. is considering a new project whose data is as follows: Sales revenues: $23,500, Depreciation: $1,000, Other operating costs: $14,500, and a tax rate of 45%. What is the project's Year 1 cash flow to the nearest dollar? (a) $8,788 (b) $9,325 (c) $9,138 (d) $9,363 (e) $9,450.
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