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1 0 s . 2 Consider the following financial data for an investment project: Required capital investment at n = 0 :$ 1 0 0

10s.2 Consider the following financial data for an investment project:
Required capital investment at n=0:$100,000
Project service life: 10 years
Salvage value at n=10:$15,000
Annual revenue: $150,000
Annual O&M costs (not including depreciation): $50,000
Depreciation method for tax purpose: seven-year MACRS
Income tax rate: 25%.
Determine the project cash flow at the end of year 10.
(a) $86,250
(b) $73,000
(c) $75,000
(d) $67,000
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