Question: Ben's Border Caf is considering a project that will have sales of $16,000 and operating costs of $10,000 in Year 1. If the project is

Ben's Border Caf is considering a project that will have sales of $16,000 and operating costs of $10,000 in Year 1. If the project is implemented, the taxes in Year 1 will be $1,500, and the depreciation expense in Year 1 will be $1,500. What is the operating cash flow of this project in Year 1?

  • $4,000

  • $6,000

  • $3,000

  • $8,500

  • $4,500

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!