Question
Fool Proof Software is considering a new project whose data are shown below. The equipment has an economic life of 3 years, and is in
Fool Proof Software is considering a new project whose data are shown below. The equipment has an economic life of 3 years, and is in the CCA class 10 (30%). Revenues and cash operating costs are expected to be constant over the project's 3-year life. What is the net operating cash flow for Year 1?
Equipment cost$65,000
Annual sales revenues$60,000
Annual cash operating costs$25,000
Tax rate35.0%
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International Financial Management
Authors: Cheol Eun, Bruce G. Resnick
8th edition
125971778X, 978-1259717789
