Fitzgerald Computers Is Considering a New Project Whose Data Are

question 25

Multiple Choice

Fitzgerald Computers 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?

• A) $28,115
• B) $28,836
• C) $29,575
• D) $30,333
• E) $31,092