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QUESTION 21 As the CEO of firm A, you are asked to estimate the cash flows. The equipment for this project will be used for

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QUESTION 21 As the CEO of firm A, you are asked to estimate the cash flows. The equipment for this project will be used for the next four years. It will be worthless by the end of year 4. The depreciation rates are 33.331, 44.451, 14.811, and 7.411 for Years 1 through 4. Assume that sales and costs are constant over the projects 4 years of operation. What is the cash flow in Year 42 Equipment expenses (depreciable basis) $70,000 Sales / year (constant) $42,500 Operating costs (excluding depreciation) $25,000 Tax rate 25.0% O $14,712 O $14,821 $14,422 $13,245

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