Reference no: EM132484199

A company 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. 

Equipment cost (depreciable basis)                                                                   $90,000

Sales revenues, each year                                                                                  $42,500

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

Tax rate                                        35%

What is the project's Year 4 cash flow?