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Your company, RMU Inc., is considering a new project whose data are shown below. Under the new tax law, the equipment used in the project

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Your company, RMU Inc., is considering a new project whose data are shown below. Under the new tax law, the equipment used in the project is eligible for 100% bonus depreciation, so it will be fully depreciated at t = o. What is the project's Year 1 cash flow? Sales revenues $30,400 Operating costs $12,900 Tax rate 25.0% a. $13,125 b. $21,875 C$14,000 d. $9,900 e. $17,500

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