Answer:
a. $5,950
Explanation:
operating income = sale - operating costs - depreciation
               = $13,000 - $6,000 - $4,000
               = $3000
cash flow for year 1 = operating income - tax + depreciation
                 = 3000 - 3000*35% + 4000
                 = 3000 - 1050 + 4000
                 = $5950
Therefore, The project's Year 1 cash flow is $5950.
