61,000machine with a 6.year class life was purchased 2 years 380 . The machine will now be sold for $50,000and replaced with a new machine costing $79,000, with a 10 year class life. The new machithe will not increase sales, but will decrease operating costs by $14,000per year, Simplified straight line depreciation is employed for both muchines, and the murginal corporate tax rate is 34 percent. Whot is the incremental annual cash flow associated with the project?
61,000machine with a 6.year class life was purchased 2 years 380 . The machine will now be sold for $50,000and replaced with a new machine costing $79,000, with a 10 year class life. The new machithe will not increase sales, but will decrease operating costs by $14,000per year, Simplified straight line depreciation is employed for both muchines, and the murginal corporate tax rate is 34 percent. Whot is the incremental annual cash flow associated with the project?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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61,000machine with a 6.year class life was purchased 2 years 380 . The machine will now be sold for $50,000and replaced with a new machine costing $79,000, with a 10 year class life. The new machithe will not increase sales, but will decrease operating costs by $14,000per year, Simplified straight line
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