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Fool Proof Software is considering a new project whose data are shown below. The equipment that will be used as a 3-year class life, and
Fool Proof Software is considering a new project whose data are shown below. The equipment that will be used as a 3-year class life, and will be depreciated by the MACRS depreciation system. Revenues and cash operating costs are expected to be constant over the project's 10-year life. What is the year 1 after-tax net operating cash flow?
Equipment cost(depreciable basis)= $75,000
Sales revenues each year= $70,000
Cash operating costs= $25,000
Tax rate= 35.0%
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