Question
Your company, CSUS Inc., is considering a new project whose data are shown below. The required equipment has a 3-year MACRS tax class. Revenues and
Your company, CSUS Inc., is considering a new project whose data are shown below. The required equipment has a 3-year MACRS tax class. Revenues and other operating costs are expected to be constant over the projects 4-year expected operating life. The salvage value of the equipment is $0.
| Equipment cost | $70,000 |
| Sales revenues, each year | $42,500 |
| Business expenses | $25,000 |
| Tax rate | 35.0% |
What is the projects Year 4 cash flow?
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