Fool Proof Software is considering a new project whose data are shown below.The equipment that would be used has a 3-year tax life.Under the new tax law,the equipment used in the project is eligible for 100% bonus depreciation,so it will be fully depreciated at t = 0.Revenues and operating costs are expected to be constant over the project's 10-year expected life.What is the Year 1 cash flow?
A) $33,177
B) $22,409
C) $48,750
D) $26,483
E) $22,991

Question

Fool Proof Software is considering a new project whose data are shown below.The equipment that would be used has a 3-year tax life.Under the new tax law,the equipment used in the project is eligible for 100% bonus depreciation,so it will be fully depreciated at t = 0.Revenues and operating costs are expected to be constant over the project's 10-year expected life.What is the Year 1 cash flow? 
A) $33,177 
B) $22,409 
C) $48,750 
D) $26,483 
E) $22,991

Quizplus · Accepted Answer

The Answer of Fool Proof Software is considering a new project whose data are shown below.The equipment that would be used has a 3-year tax life.Under the new tax law,the equipment used in the project is eligible for 100% bonus depreciation,so it will be fully depreciated at t = 0.Revenues and operating costs are expected to be constant over the project's 10-year expected life.What is the Year 1 cash flow? 
A) $33,177 
B) $22,409 
C) $48,750 
D) $26,483 
E) $22,991

Fool Proof Software Is Considering a New Project Whose Data