Estimate the year one cash flow for a project

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Reference no: EM132022459

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

Reference no: EM132022459

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