Question: Your company, UWP Inc., is considering a new project whose data are shown below. Under the new tax law, the equipment used in the project

Your company, UWP Inc., is considering a new project whose data are shown below. Under the new tax law, the equipment used in the project is eligible for 100% bonus depreciation, so it will be fully depreciated at t = 0. What is the project's Year 1 cash flow?

Sales revenues $26,750

Operating costs $12,000

Tax rate 25.0%

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