Clemson Software is considering a new project whose data are shown below. The required equipment has a 3-year tax life, after which it will be worthless, and it will be depreciated by the straight-line method over 3 years. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's Year 1 cash flow? Do not round the intermediate calculations and round the final answer to the nearest whole number. Equipment cost (depreciable basis)$97,000 Straight-line depreciation rate33.333% Sales revenues, each year$60,000 Operating costs (excl. depr.)$25,000 Tax rate35.0% ?
A. $31,682
B. $29,979
C. $30,660
D. $36,792
E. $34,067
Answer: E
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