Your company, CSUS considering new project whose data shown below. required equipment has 3-year tax Ife. Under the new law, the equipment used the project is eligible 100% bonus depreciation, the equipment be fully depreciated at t=0. The equipment has no salvage value the end of the project's life, and project does not require any additional operating working capital. Revenues and operating costs are expected to be constant over the project's 10- year expected operating What the project's Year cash Now?
Your company, CSUS considering new project whose data shown below. required equipment has 3-year tax Ife. Under the new law, the equipment used the project is eligible 100% bonus depreciation, the equipment be fully depreciated at t=0. The equipment has no salvage value the end of the project's life, and project does not require any additional operating working capital. Revenues and operating costs are expected to be constant over the project's 10- year expected operating What the project's Year cash Now?
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 17P
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Your company, CSUS considering new project whose data shown below. required equipment has 3-year tax Ife. Under the new law, the equipment used the project is eligible 100% bonus
Equipment cost $70,000
Sales revenues, each year $38,500
Operating costs $25,000
Tax Rate 25.0%
a $13,500
b. $10,125
C. $10,800
D. $16,875
E. $15,958
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