Question: Water's Edge Resorts is evaluating a project that would require an initial investment in equipment of $ 4 9 8 , 0 0 0 .

Water's Edge Resorts is evaluating a project that would require an initial investment in equipment of $498,000.00 and that is expected to last for 4 years. MACRS depreciation would be used where the depreciation rates in years 1,2,3,4, and 5 are 25%,45%,15%,10, and 5%, respectively. For each year of the project, Water's Edge Resorts expects relevant annual revenue associated with the project to be $644000.00 and relevant annual costs associated with the project to be $479000.00. The tax rate is 44.00 percent. What is (X plus Y) if x is the relevant operating cash flow (OCF) associated with the project expected in year 1 of the project and Y is the relevant OCF associated with the project expected in year 4 of the project?
$191,004.00(plus or minus $10)
$261,492.00(plus or minus $10)
$294,360.00(plus or minus $10)
$103,356.00(plus or minus $10)
None of the above is within $10 of the correct answer
 Water's Edge Resorts is evaluating a project that would require an

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