Solution-Revenues and other operating costs are expected to

Revenues and other operating costs are expected to be

Reference no: EM13485756

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 accelerated rates for such property are 33%, 45%, 15%, and 7% 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	35.0%

Reference no: EM13485756

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Revenues and other operating costs are expected to be

Reference no: EM13485756

Reference no: EM13485756

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