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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
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 = 0. What is the project's Year 1 cash flow?
Sales revenues | $26,750 |
Operating costs | $12,000 |
Tax rate | 25.0% |
Group of answer choices
$2,350
$4,345
$12,883
$1,063
$10,529
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