Whitestone Products Is Considering a New Project Whose Data Are $\$ 70,000$

Whitestone Products is considering a new project whose data are shown below.The required equipment has a 3-year tax life,and the accelerated rates for such property are 33.33%,44.45%,14.81%,and 7.41% for Years 1 through 4.Revenues and other 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? Equipment cost (depreciable basis) $\$ 70,000$
Sales revenues, each year $\$ 42,500$
Operating costs (excl. deprec.) $\$ 25,000$
Tax rate $35.0 \%$

A) $11,904
B) $12,531
C) $13,190
D) $13,850
E) $14,542

Correct Answer:

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