Question
A project will generate sales of $50,682 each. The variable costs are $10,830 and the fixed costs are $16,160. The project will use an equipment
A project will generate sales of $50,682 each. The variable costs are $10,830 and the fixed costs are $16,160. The project will use an equipment worth $124,320 that will be depreciated on a straight-line basis to a zero book value over a 6-year life of the project. If the tax rate is 17%, what is the operating cash flow?
A project requires $95,588 of equipment that is classified as a 7-year property. What is the depreciation expense in Year 3 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent?
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