Clemson Software is considering a new project whose data are shown below. The required equipment has...

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Clemson Software is considering a new project whose data areshown below. The required equipment has a 3-year tax life and willbe depreciated by the straight-line method over 3 years. Revenuesand other operating costs are expected to be constant over theproject's 3-year life. What is the project's Year 1 cash flow?
Equipment cost (depreciable basis) $65,000
Increase in inventory $5,000
Straight-line depreciation rate 33.333% ($21,667 per year)
Sales revenues, each year $60,000
Operating costs (excl. depreciation) $25,000
Salvage Value $10,000
Tax rate 35.0%
a. $28,115 b. $28,836 c. $29,575 d. $30,333 e. $31,092
Based on the information in the previous question, what is theproject’s non-operating cash flows? a. $6,500 b. $10,000 c. $11,500d. $15,000 e. $16,000

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Clemson Software is considering a new project whose data areshown below. The required equipment has a 3-year tax life and willbe depreciated by the straight-line method over 3 years. Revenuesand other operating costs are expected to be constant over theproject's 3-year life. What is the project's Year 1 cash flow?Equipment cost (depreciable basis) $65,000Increase in inventory $5,000Straight-line depreciation rate 33.333% ($21,667 per year)Sales revenues, each year $60,000Operating costs (excl. depreciation) $25,000Salvage Value $10,000Tax rate 35.0%a. $28,115 b. $28,836 c. $29,575 d. $30,333 e. $31,092Based on the information in the previous question, what is theproject’s non-operating cash flows? a. $6,500 b. $10,000 c. $11,500d. $15,000 e. $16,000