Eisenhower Communications is trying to estimate the first year cash flow (at Year 1) for a proposed project. Note that this estimate is for capital budgeting purposes, so financing costs are ignored. The financial staff has collected the following information on the project Sales revenues = $14.30 million, operating costs (excluding depreciation) = $9.30 million, depreciation - $2.20 million, interest expense $2.40 million tax rate - 37.0%, and WACC - 16.1%. Estimate the project's cash flow for the first year based on this data, then estimate the cash flow for the same project with the tax rate = 30,00%, then calculate the change in the cash flow estimate as a result of changing the tax rate. 50.084 million $0.112 million $0.140 million $0.168 million $0.196 million QUESTION 18 Corcoran consulting is deciding which of two computer systems to purchase. The firm can purchase state-of-the-art equipment (System A) for $518,000, which will generate cash flows of $310,000 at the end of each year for the next 2 years. Alternatively, the company can spend $507,000 for equipment that can be used for 4 years and will generate cash flows of $175,000 at the end of each year (System B). The company's WACC is 10%. Both projects can be repeated indefinitely. Based on this information, determine which ystem should the company choose and calculate the system's EAA (equivalent annual annuity), Choose project A. The EAA IS $11,904.76. Choose project A. The EAA is $11,719.05