Question: A project will increase revenues by $45,000 but will increase operating expenses by $15,000 and increase depreciation by $5,000. Assume that the tax rate is

A project will increase revenues by $45,000 but will increase operating expenses by $15,000 and increase depreciation by $5,000. Assume that the tax rate is 30%. The net cash flows is____.

An asset that has a book of 6,500 could be sold for $8,000 at the end of the project life. At the beginning of the project the company invested $3,500 in net working capital. The tax rate is 40%. The net salvage value is___.

Financial analysts focus on ____ when evaluating potential investments.

		cash flows
		profit
		Net cash flows
		expenses

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