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Your company, CSUS Inc., is considering a new project whose data are shown below. The required equipment has a 3 - year tax life, and

Your company, CSUS Inc., is considering a new project whose data are shown below. The required equipment has a 3-year tax life, and the accelerated rates for such property are 33%,45%,15%, and 7% for Years 1 through 4. Revenues and other 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?
Sales revenues, each year = $42,500; Equipment cost (depreciable basis)= $70,000; Operating costs (excl. deprec.)= $25,000 ;Tax rate =35.0%
A. $12,436 B. $11,814 C. $13,090 D. $13,745 E. $14,432

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