Fool Proof Software is considering a new project whose data are shown below. The equipment...
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Fool Proof Software is considering a new project whose data are shown below. The equipment that would be used has a 3year tax life, and the allowed depreciation rates for such property are 33.0\%, 45.0\%, 15.0\%, and 7.0% for Years 1 through 4 . 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. Revenues and other operating costs are expected to be constant over the project's 10-year expected life. What is the Year 1 cash flow? a. $59,100 b. $45,288 c. $44,325 d. $48,863 e. $62,475
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