Hide student question Time Left : 01:59:18 Student question ABC 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? Equipment cost (depreciable basis) $70,000 Sales revenues, each year $42,500 Operating costs (excl. depreciation) $25,000 Tax rate 35.0% Group of answer choices $11,814 $12,436 $13,090 $13,745 $14,432
Hide student question Time Left : 01:59:18 Student question ABC 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? Equipment cost (depreciable basis) $70,000 Sales revenues, each year $42,500 Operating costs (excl. depreciation) $25,000 Tax rate 35.0% Group of answer choices $11,814 $12,436 $13,090 $13,745 $14,432
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 15E
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ABC 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?
| Equipment cost ( |
$70,000 |
| Sales revenues, each year | $42,500 |
| Operating costs (excl. depreciation) | $25,000 |
| Tax rate | 35.0% |
Group of answer choices
$11,814
$12,436
$13,090
$13,745
$14,432
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