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QUESTION
Fitzgerald Computers is considering a new project whose data are shown below.
Fitzgerald Computers 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 for a yearly rate of 33.333%. 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?
