Company, CSUS Inc

Multiple Choice

company, CSUS Inc., 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%, 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 expected operating life.What is the project's Year 4 cash flow?

Equipment cost (depreciable basis) $70,000
Sales revenues, each year $30,500
Operating costs (excl. deprec.) $25,000
Tax rate 35%

A) $11,814
B) $12,436
C) $13,090
D) $13,745
E) $14,432