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Clemson software is considering a new project whose data are shown below. The required equipment has a 3 year tax life after which it will be worthless and it will be depreciated by the straight line method over 3 years. Revenues and other operating costs are expected to be constant over the projects 3 year life what is the projects year 1 cash flow? equipment cost depreciable basis = $75,000 sales revenue each year = $80,00 operating costs = $30,000 tax rate = 35%.

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Financial Management, Finance

Category:- Financial Management
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