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 projects 10-year expected operating life. What is the projects Year 4 net operating cash flow?

Equipment cost (depreciable basis) $100,000

Sales revenues, each year $40,000

Operating costs (excl. deprec.) $20,000

Tax rate 35.0%

Hint: Net Operating Cash Flow = EBIT x (1-Tax Rate) + Depreciation

Group of answer choices

$13,400

$14,225

$15,450

$13,875

$13,000