Lowell Inc

Lowell Inc. is considering a new project whose data are shown below. The required equipment has a 3-year tax life, and the accelerated rates for such property are 33.33%, 44.45%, 14.81%, and 7.41% for Years 1 through 4. Revenues and other operating costs are expected to be constant over the project's 10-year expected operating life. What is the project's Year 4 cash flow? 

Equipment cost (depreciable basis)$70,000

Sales revenues, each year$42,500

Operating costs (excl. deprec.)$25,000

Tax rate30.0%

$13,190

$11,904

$12,531

$13,806