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Clemson software is considering a new project who’s that are shown below. The required equipment has a three-year tax life, after which it will be worthless, and it will be depreciated by the straight-line method over three years. Revenues another operating costs are expected to be consistent over the projects three-year life. What is the project one year cash flow?

Equipment Costs = $75,000

Sales revenues each year = $80,000

Operating costs = $30,000

Tax rate = 35%

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92787401

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