Question: Your company, CSUS Inc., is considering a new project whose data are shown below. The required equipment has a 3-year MACRS tax class. Revenues and

Your company, CSUS Inc., is considering a new project whose data are shown below. The required equipment has a 3-year MACRS tax class. Revenues and other operating costs are expected to be constant over the projects 4-year expected operating life. The salvage value of the equipment is $0.

Equipment cost	$70,000
Sales revenues, each year	$42,500
Business expenses	$25,000
Tax rate	35.0%

What is the projects Year 4 cash flow?

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