Question: Fool Proof Software is considering a new project whose data are shown below. The equipment has an economic life of 3 years, and is in

Fool Proof Software is considering a new project whose data are shown below. The equipment has an economic life of 3 years, and is in the CCA class 10 (30%). Revenues and cash operating costs are expected to be constant over the project's 3-year life. What is the net operating cash flow for Year 1?

Equipment cost$65,000

Annual sales revenues$60,000

Annual cash operating costs$25,000

Tax rate35.0%

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