Your Company,CSUS Inc

question 59

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.Under the new law,the equipment used in the project is eligible for 100% bonus depreciation,so the equipment will be fully depreciated at t = 0.The equipment has no salvage value at the end of the project's life,and the project does not require any additional operating working capital.Revenues and 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?

• A) $8,707
• B) $9,231
• C) $10,125
• D) $10,805
• E) $9,756

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Definitions:

Social Responsibility

The ethical framework suggesting that an individual or organization has an obligation to act for the benefit of society at large.

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A substance formed when two or more chemical elements are chemically bonded together.

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Easy to understand or do; not complicated.