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QUESTION 6 Fool Proof Software is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax

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QUESTION 6 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 Under the new tax law, the equipment used in the project is eligible for 100% bonus depreciation, so it will be fully depreciated at 1 = 0. Revenues and operating costs are expected to be constant over the project's 10-year expected life. Whet is the Year I cash flow? Equipment cost Sales revenues, each year Operating costs (excl. depr) Tax rate a. 525,804 O 6531.641 OCS48,750 O d. 526,419 O . $24.576 $55,000 $90,000 $25,000 25.0%

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