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What is the year two cash flows
Course:- Financial Management
Reference No.:- EM13942996




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Trinadad Software is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life and the allowed depreciation rates, (MACRES) for such a property are 33%, 15%, and 7% for years 1-4. Revenues and other operatating costs are expected to be constant over the project's 10 year life-span. What is the year 2 cash flows? considering 14% Macres

Equippment cost: $65,000

Shipping cost: $10,000

Sales revenues per year: $60,000

Operating costs (excluding depreciation) $25,000

Tax Rate 35%




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