For the cash flows shown, determine the incremental cash flow between machines B and A (a) in year 0, (b) in year 3, and (c) in year 6. Machine A B First Cost, $ -16,000 -25,000 AOC, $ per Year Salvage Value, $ -1,800 -400 3,000 6,000 Life, Years
For the cash flows shown, determine the incremental cash flow between machines B and A (a) in year 0, (b) in year 3, and (c) in year 6. Machine A B First Cost, $ -16,000 -25,000 AOC, $ per Year Salvage Value, $ -1,800 -400 3,000 6,000 Life, Years
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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6

Transcribed Image Text:For the cash flows shown, determine the incremental cash flow between machines B and A (a) in year O, (b) in year 3, and (c) in year 6.
Machine
A
First Cost, $
-16,000
-25,000
AOC, $ per Year
Salvage Value, $
-1,800
-400
3,000
6,000
Life, Years
3.
6.
a) The incremental cash flow between machines B and A in year O is $ -9000
b) The incremental cash flow between machines B and A in year 3 is $
c) The incremental cash flow between machines B and A in year 6 is $
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