project whose data are shown below. The equipment that would be used has a 3-year tax life, and the allowed depreciation rates for such property are 33.33%, 44.45%, 14.81%, and 7.41% for Years 1 through 4 Revenues and other operating costs are expected to be constant over the project's 10-year expected life. What is the Year 1 cash flow? employer, Freeman Software, is considering Your new a new |Equipment cost (depreciable basis) $65,000 Sales revenues, each year $60,000 Operating costs (excl. deprec.) $25,000 35.0% Tax rate a. $31,849 b. $33,442 c. $35,114 d. $30,333 e. $36,869 Century Roofing is thinking of opening would be used, and it could sell it for $100,000 after taxes if it decides not to open the new warehouse. The equipment for the project would be depreciated by the straight-line method over the project's 3-year life, after which it would be worth nothing and thus it would have a zero salvage value. No new working capital would be required, and revenues and other operating costs would be constant over the project's 3-year life. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.) a new warehouse, and the key data are shown below. The company owns the building that | Project cost of capital (r) 10.0% Opportunity cost $100,000 |Net equipment cost (depreciable basis) $65,000 |Straight-line deprec. rate for equipment 33.333% Sales revenues, each year $123,000 Operating costs (excl. deprec.), each year $25,000 Tax rate 35% a. $12,271 b. $10,521 c. $12,885 d. $11,075 e. $11,658