Question: Your company, RMU Inc., is considering a new project whose data are shown below. What is the project's Year 1 cash flow? Sales revenues $21,750

Your company, RMU Inc., is considering a new project whose data are shown below. What is the project's Year 1 cash flow?

Sales revenues	$21,750
Depreciation	$8,000
Other operating costs	$12,000
Tax rate	35.0%

a. $8,863

b. $9,960

c. $8,772

d. $9,138

e. $9,686

Karsted Air Services is now in the final year of a project. The equipment originally cost $21 million, of which 85% has been depreciated. Karsted can sell the used equipment today for $5.25 million, and its tax rate is 35%. What is the equipment's after-tax salvage value? Round your answer to the nearest dollar. Write out your answer completely. For example, 13 million should be entered as 13,000,000.

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