Question
Your company, CSUS Inc. is considering a new project whose data are show below. the required equipment has a 3-year tax life. under the new
Your company, CSUS Inc. is considering a new project whose data are show below. the required equipment has a 3-year tax life. under the new law, the equipment used in the project is eligible for 100% bonus depreciation so the equipment will be fully depreciated at t=0 the equipment has no salvage value at the end of project's life, and the project does not require any additional operating working capital. revenues and operating costs are expected to be constant over the project's 10-year expected operating life. what is the project's year 4 cash flow. equipment cost = 70000 sales each year = 38500 operating costs = 25500 tax rate 25% a. 11218 b. 11710 c. 10125, d. 10332 e. 11414
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