Optical Sensor Compatibility Question

Greetings,

Just getting started with Arduino and I'm fairly green when it comes to electronics in general.

I was hoping someone could take a quick look at this optical sensor and let me know of any compatibility issues I may not be aware of.

http://www.transcat.com/PDF/ros-w.pdf

If I understand things correctly, the black wire (signal) will go to the analog Arduino input pin and +5 volts will be sent when sensor detects the reflective tape (seen as high by the Adurino.)

The other 3 wires are just the power supply (2 common wires are negative.)

Let me know if that's right. I hope the PDF has enough info.
Thanks!

Cool. Thanks for the help!