Answer:
c. $ 9,463
Explanation:
operating income = sale - operating costs - depreciation
= $22,250 - $12,000 - $8,000
= $2250
cash flow for year 1 = operating income - tax + depreciation
= 2250 - 2250*35% + 8000
= 2250 - 787.5 + 8000
= $9462.5
Therefore, The project's Year 1 cash flow is $9462.5