Your Company,CSUS Inc ?
A) $8,700
B) $6,884
C) $7,565
D) $7,716
E)

question 67

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? $$\begin{array} { l r } \text { Equipment cost (depreciable basis) } & \$ 70,000 \\\text { Sales revenues, each year } & \$ 34,000 \\\text { Operating costs (excl. depr.) } & \$ 25,000 \\\text { Tax rate } & 35.0 \%\end{array}$$
?

• A) $8,700
• B) $6,884
• C) $7,565
• D) $7,716
• E) $8,473

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