What is the year one cash flow

Reference no: EM131977023

Question: Fool Proof Software is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, and the allowed depreciation rate for such property at 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 life. What is the year 1 cash flow? Equipment cost (depreciable basis) $90,000 Sales Revenues, each year $60,000 Operating cost (excl. depr.) $25,000 Tax Rate 35.0%

Reference no: EM131977023

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