Question: Whitestone Products is considering a new project whose data are shown below. The required equipment has a 3-year tax life, and the accelerated rates for
Whitestone Products is considering a new project whose data are shown below. The required equipment has a 3-year tax life, and the accelerated 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 operating life. What is the project's Year 4 cash flow? Equipment cost (depreciable basis) $70.000 Sales revenues, each year $42,500 Operating costs (excl. deprec.) $25,000 Tax rate 25.0% $14,422 $15,900 $15,143 $13,016 $13,701
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