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Lendrum Inc. is considering a new project whose data are shown below. The equipment has an economie life of 3 years, and is in CCA
Lendrum Inc. is considering a new project whose data are shown below. The equipment has an economie life of 3 years, and is in CCA class 10 (30%) The half-year rule applies. 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 80,000
Sales revenues, each year 60,000
Annual cash operating costs 35,000
Tax rate 25.0%
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