Question: Your company, RMU Inc., is considering a new project whose data are shown below. under new tax law equipment used in project is eligible for

Your company, RMU Inc., is considering a new project whose data are shown below. under new tax law equipment used in project is eligible for 100% bonus depreciation, at t=0.What is the project's Year 1 cash flow?

Sales revenues $26,750

Depreciation 100%

operating costs 13,511$

Tax rate 25.0%

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