Taylor inc., the company you work for, is considering a new project whose data are shown below. what is the project's year 1 cash flow? sales revenues, each year $62,500 depreciation $8,000 other operating costs $25,000 interest expense $8,000 tax rate 35.0%

a. $28,534

b. $27,175

c. $25,816

d. $29,960

b. $27,175

Explanation:

The computation of the projected year 1 cash flow is shown below:

Sales revenues, each year$62,500

Less: Other operating costs    ($25,000)

Less: Depreciation expense($8,000)

EBIT or Earning before interest and tax$29,500

Less: Tax at 35%($10,325)

EAT or earning after tax  $19,175

Add: depreciationexpense $8,000

Cash Flows$27,175

answer; the correct answer is (0.08);

answer///a road map;