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

Your company, CSUS Inc., 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%,45%,15%, and 7% 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 Revenue each year
$42,500
Operating costs (excluding depreciation)
$25,000
Tax rate
35%
$14,432
$12,436
$11,814
$13,090
$13,745

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