Question: You work for Whittenerg Inc., which is considering a new project whose data are shown below. Under the new tax law, the equipment used in

You work for Whittenerg Inc., which is considering a new project whose data are shown below. Under the new tax law, the equipment used in the project is eligible for 100% bonus depreciation, so it will be fully depreciated at t = 0. What is the project's Year 1 cash flow?

Sales revenues, each year	$77,500
Operating costs	$28,700
Interest expense	$8,000
Tax rate	25.0%

a. $48,800

b. $38,600

c. $30,600

d. $36,600

e. $44,600

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