Your company, Q4 Inc., is considering a new project whose data are shown below.

Question

Your company, Q4 Inc., is considering a new project whose data are shown below. The required equipment has a 3-year tax life, and the MACRS rates for such property are 33%, 45%, 15%, and 7% for Years 1 through 4. Revenues and other operating costs are expected to be constant over the project's 10-year operating life. What is the project's operating cash flow during Year 4?

Equipment cost (depreciable basis) $70,000
Sales revenues, each year $50,000
Operating costs excl. depr'n $25,000
Tax rate 35.0%

a. $16,213
b. $17,067
c. $17,965
d. $18,863
e. $19,806

Explanation / Answer

b. $17,067

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.