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Your company, CSUS 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) $70,000 Sales revenues, each year $33,500 Operating costs (excl. depr.) $25,000 Tax rate 35.0%

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92727060

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