Clemson Software Is Considering a New Project Whose Data Are

question 11

Multiple Choice

Clemson Software is considering a new project whose data are shown below.The required equipment has a 3-year tax life,after which it will be worthless,and it will be depreciated by the straight-line method over 3 years.Revenues and other operating costs are expected to be constant over the project's 3-year life.What is the project's Year 1 cash flow? Do not round the intermediate calculations and round the final answer to the nearest whole number. $$\begin{array} { l r } \text { Equipment cost (depreciable basis) } & \$ 97,000 \\\text { Straight-line depreciation rate } & 33.333 \% \\\text { Sales revenues, each year } & \$ 60,000 \\\text { Operating costs (excl. depr.) } & \$ 25,000 \\\text { Tax rate } & 35.0 \%\end{array}$$
?

• A) $31,682
• B) $29,979
• C) $30,660
• D) $36,792
• E) $34,067

---

Definitions:

Passionate Love

A state of intense longing for union with another. Passionate love is characterized by strong emotions, sexual desire, and anxiety.

Sternberg

Refers to Robert Sternberg, a psychologist known for his theory on love and intelligence, which includes the triangular theory of love and the triarchic theory of intelligence.

Long-Term Relationships

Emotional, social, or professional connections sustained over an extended period.

Commitment

The state or quality of being dedicated to a cause, activity, or relationship, often requiring personal sacrifice or endurance.