Question: 21. DIY Computers is considering a new project with the data shown below. The required equipment will cost $60,000 (the depreciable basis). It has a

 21. DIY Computers is considering a new project with the data

21. DIY Computers is considering a new project with the data shown below. The required equipment will cost $60,000 (the depreciable basis). It has a 3-year tax life, after which it will be worthless, and it will be depreciated by the straight-line method over 3 years. Revenues and other operating costs are expected to be constant over the project's 3-year life. $64,000 Sales revenues, each year Operating costs (excl. depreciation) $%22,000 Tax rate 39.0% Calculate the project's Year 3 cash flow

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