1. Whitestone Products is considering a new project whose data are shown below. The required equipment has a 4-year tax life, and the straight-line method is used 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	35.0%

   	a.	$17,500
   	b.	$13,850
   	c.	$12,531
   	d.	$11,904
   	e.	$13,190