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Your Company, CSUS Inc

question 7

Multiple Choice

Your 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?

Recognize various financing options available for managing short-term liquidity.
Identify the significance of the cash cycle and operating cycle in financial management.
Understand the impact of credit policies on cash flow and customer relationships.
Grasp the concept of factoring as a cash management technique.

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