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

 Your company is considering a new project whose data are shown

Your company is considering a new project whose data are shown below. The required equipment has a 3-year tax life, and the MACRS 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 project's Year 4cash flow? Equipment cost (depreciable basis) $70000 Sales revenues, each year $42, 500 Operating costs (excluding depreciation) $25,000 Tax rate 35.0% $14, 432 $13, 745 $11, 814 $13, 090 $12, 436

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