Company, CSUS Inc

question 28

Multiple Choice

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?

Equipment cost (depreciable basis) $70,000
Sales revenues, each year $30,500
Operating costs (excl. deprec.) $25,000
Tax rate 35%

• A)$11,814
• B)$12,436
• C)$13,090
• D)$13,745
• E)$14,432

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Definitions:

DSL Modems

Devices that connect computers to the internet via telephone lines, allowing for digital data transmission.

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Telecommunication devices that transmit and receive sound, most commonly voice, across distances.

Coaxial Cable

A type of electrical cable consisting of a central conductor surrounded by an insulating layer and an outer conducting shield, used for transmitting television, internet, and other data signals.

Peer-To-Peer Processing

A distributed network architecture where participants (peers) share part of their hardware resources to directly perform computing tasks without requiring central coordination.