Question: A project that is expected to last six years will generate a profit and cash flow contribution before taxes and depreciation of $23,000 per year.

A project that is expected to last six years will generate a profit and cash flow contribution before taxes and depreciation of $23,000 per year. It requires the initial purchase of equipment costing $60,000, which will be depreciated over four years. The relevant tax rate is 25%. Calculate the project’s cash flows. Round all figures within your computations to the nearest thousand dollars.

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