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Question 4 (5 points) Your new employer, Four Stars, Inc, is considering a new project whose data are shown below. The equipment that would be

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Question 4 (5 points) Your new employer, Four Stars, Inc, 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 33.33%, 44.45%, 14.81%. and 7.41% 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 1 cash flow? Equipment cost (depreciable basis) Sales revenues, each year Operating costs (excl. deprec.) Tax rate $165.000 $600,000 $250,000 40.0%

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