Question: Your company, CSUS Inc., is considering a new project whose data are shown below. The required equipments accelerated depreciation rates are 33%, 45%, 15%, and
Your company, CSUS Inc., is considering a new project whose data are shown below. The required equipments accelerated depreciation rates 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) $50,000 Sales revenues, each year $40,000 Operating costs (excl. deprec.), each year $20,000 Tax rate 35.0%
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