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%