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

Question

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

Quizplus · Accepted Answer

The Answer of 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

Your Company,CSUS Inc