2. 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 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 life. Year 1 cash flow? What is the Equipment cost (depreciable basis) Sales revenues, each year Operating costs (excl. deprec.) Tax rate a. $29,258 b. $31,586 c. $32,092 d. $33,208 e. $35,778 $64,000 $60,000 $22,000 38.0%