Project year 4 cash flow-whitestone products

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Whitestone Products is considering a new project whose data are shown below. The required equipment has a 3-year tax life, and the accelerated rates for such property are 33.33%, 44.45%, 14.81%, and 7.41% for years 1 through 4. Revenues and other operating costs are expected to be constant over the project's 10-year expected operating life. What is the project's year 4 cash flow?

Equipment cost (depreciable basis) $70,000

Sales revenues, each year $42,500

Operating costs (excl. deprec.) $25,000

Tax rate

Reference no: EM132662214

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