a company is considering a new project whose data are shown below. The required equipment has a

3-year tax life, and the accelerated 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 projects 10-year expected operating life.

What is the projects Year 4 cash flow?

Equipment cost (depreciable basis) $90,000

Sales revenues, each year $42,500

Operating costs (excl. deprec.) $25,000

Tax rate 35.0%