Question
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% |
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Corporate Finance Reader
Authors: Robert W. Kolb
2nd Edition
1878975536, 978-1878975539
