Question: Lendrum Inc. is considering a new project whose data are shown below. The equipment has an economie life of 3 years, and is in CCA

Lendrum Inc. is considering a new project whose data are shown below. The equipment has an economie life of 3 years, and is in CCA class 10 (30%) The half-year rule applies. 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 80,000

Sales revenues, each year 60,000

Annual cash operating costs 35,000

Tax rate 25.0%

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