Clemson software is considering a new project who’s that are shown below. The required equipment has a three-year tax life, after which it will be worthless, and it will be depreciated by the straight-line method over three years. Revenues another operating costs are expected to be consistent over the projects three-year life. What is the project one year cash flow?
Equipment Costs = $75,000
Sales revenues each year = $80,000
Operating costs = $30,000
Tax rate = 35%