22 Fitzgerald Computers is considering a new project whose data are shown below. The required equipment 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. What is the project's Year 1 cash flow?

Equipment cost (depreciable basis)	$65,000
Straight-line depreciation rate	33.333%
Sales revenues, each year	$60,000
Operating costs (excl. deprec.)	$25,000
Tax rate	40.0%

	a.	$27,300
	b.	$30,333
	c.	$28,438
	d.	$29,667
	e.	$31,950