ABC Company is considering a new project whose data are shown below. The required equipment is depreciated using the MACRS 5-year property class. Revenues and other operating costs are expected to be constant over the projects 5-year life. What is the projects Year 3 cash flow?

Equipment cost (depreciable basis) $80,000

Sales revenues, each year $66,000

Operating costs (excl. deprec.) $28,000

Tax rate 30.0%

Year MACRS Depreciation Rate

1 0.20

2 0.32

3 0.19

4 0.12

5 0.11

6 0.06