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Fool Proof Software is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, and

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Fool Proof Software is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, and the allowed depreciation rates for such property are 33% 45% 15%, and 7% for Years 1 through 4 Revenues and other operating costs are expected to be constant over the project's 10-year expected life. What is the Year 3 cash flow? Equipment cost (depreciable basis) Sales revenues, each year Operating costs (excl depr.) 90,000 60,000 $25,000 Tax rate 35.0% $34.802 $24.859 $33,145 $28.836 $27.475 Next

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