Question: Zeta Software is considering a new project whose data are shown below. The required equipment has a 3-year project life, after which it will be

Zeta Software is considering a new project whose data are shown below. The required equipment has a 3-year project life, after which it will be worthless, and it has a constant deduction rate over 3 years. Revenues and cash operating costs are expected to be constant over the projects 3-year life. What is the projects operating cash flow for Year 1?

Sales revenues $25,000

Capital cost allowance $8,000

Cash operating costs $12,000

Tax rate 35.0%

a. $29,196

b. $29,945

c. $30,712

d. $31,500

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