Question: calculate the projects year 3 cash flow 19. DIY Computers is considering a new project with the data shown below. The required equipment cost $56,000

calculate the projects year 3 cash flow

19. DIY Computers is considering a new project with the data shown below. The required equipment cost $56,000 (depreciable basis). It has a 2-year tax life, after which it will be worthless, and it will be depreciated by the straight-line method over its life. Revenues and other operating costs are expected to be constant over the project's life. Sales revenues, each year Annual depreciation $45,000 Operating costs (excl. depreciation) $22,000 45.000 18 = 22,500 Tax rate yr 3 cash flows 30.0% It depni

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