Question: Question 14 (1 point) Zeta Software is considering a new project whose data are shown below. The required equipment has a 3-year project life, after

Question 14 (1 point)

Question 14 (1 point) Zeta Software is considering a new project whose

Zeta Software is considering a new project whose data are shown below. The required equipment has a 3-year project life, after which it will be worthless, and it has a constant deduction rate over 3 years. Revenues and cash operating costs are expected to be constant over the projects 3-year life. What is the projects operating cash flow for Year 1?

Equipment cost

$75,000

Capital cost allowance

$25,000

Sales revenues, each year

$60,000

Cash operating costs

$25,000

Tax rate

35.0%

Question 14 options:

$30,712

$29,196

$29,945

$31,500

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