Your company, CSUS Inc., is considering a new project whose data are shown below. The required. equipment has a 3-year tax life, and the MACRS depreciation rates for such property are .33, .45, .15, and .07 for Years 1 through 4. Sales and operating costs are expected to be constant over the project's 10-year expected operating life. What is the project's Year 4 operating cash flow? Equipment cost (depreciable basis) $70,000 Sales revenues, each year $40,000 Decrease in sales of existing products $6,500 Operating costs (excl. depr.) $25,000 Tax rate 35.0% $5,864 $7,240 $7,312 $6.154 $8,398
Your company, CSUS Inc., is considering a new project whose data are shown below. The required. equipment has a 3-year tax life, and the MACRS depreciation rates for such property are .33, .45, .15, and .07 for Years 1 through 4. Sales and operating costs are expected to be constant over the project's 10-year expected operating life. What is the project's Year 4 operating cash flow? Equipment cost (depreciable basis) $70,000 Sales revenues, each year $40,000 Decrease in sales of existing products $6,500 Operating costs (excl. depr.) $25,000 Tax rate 35.0% $5,864 $7,240 $7,312 $6.154 $8,398
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter7: Exponents And Exponential Functions
Section: Chapter Questions
Problem 68SGR
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