Your company is considering a new project whose data are shown below. The required equipment...
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Accounting
Your company is considering a new project whose data are shown below. The required equipment has a 3-year economic life, and it will be depreciated by the straight-line method. Revenues and other operating costs are expected to be constant over the projects life. What is the projects Year 3 cash flow?
Equipment costs $23,000
Investment in net operating working capital $3,000
Salvage value $2,000
Sales revenue, each year, $15,000
Operating costs (excluding depreciation) $4,000
Tax rate 35%
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