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 3-year tax life, and the allowed depreciation rates for such property are 33%, 45%, 15%, and 7% for Years 1 through 4. 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?Equipment cost (depreciable basis) $48,000Sales revenues, each year $60,000Operating costs (excl. depr.) $25,000Tax rate 35.0%a. $29,709b. $28,294c. $33,387d. $29,426e. $28,860
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