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DIY computers is considering a new project with the data shown below. The required equipment will cost $60,000 (the depreciable basis). It has a 3-year
DIY computers is considering a new project with the data shown below. The required equipment will cost $60,000 (the depreciable basis). It 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 cost are expected to be constant over the projects 3-year life. Sales revenues, each year $60,000 Operating costs (excl. depreciation) $22,000 Tax rate 39.0% Calculate the projects year 3 cash flow
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