Your company, ACCT Inc, is considering a new project whose data are shown below. The...
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Your company, ACCT Inc, is considering a new project whose data are shown below. The required equipment has a 3-year tax life, and the accelerated 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 operating life. What is the project's Year 4 cash flow? Equipment cost (depreciable basis) $80,000 Sales revenues, each year $50,500 Operating costs (excl. depreciation) $15,000 Tax rate 21.0% 30565 35197
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