What is the project year cash flow

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Question - Anderson Pipe 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 3 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: EM132091966

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