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Gator Bicycles just bought a new brake calibration machine that is expected to generate $36,000 in new revenues each of the next four years without increasing cash operating costs. The machine will be depreciated according to the MACRS 3-year class of assets, and its depreciable basis is $144,000. If Gator's marginal tax rate is 35 percent, what are the annual supplemental operating cash flows attributed to the machine? Round your answers to the nearest dollar. Supplemental operating CF Year 1 2 3 4 $

Gator Bicycles just bought a new brake calibration machine that is expected to generate $36,000 in new revenues each of the next four years without increasing cash operating costs. The machine will be depreciated according to the MACRS 3-year class of assets, and its depreciable basis is $144,000. If Gator's marginal tax rate is 35 percent, what are the annual supplemental operating cash flows attributed to the machine? Round your answers to the nearest dollar. Supplemental operating CF Year 1 2 3 4 $

Essentials Of Investments
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
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Gator Bicycles just bought a new brake calibration machine that is expected to generate $36,000 in new revenues each of the next four years without increasing. cash operating costs. The machine will be depreciated according to the MACRS 3-year class of assets, and its depreciable basis is $144,000. If Gator's marginal tax rate is 35 percent, what are the annual supplemental operating cash flows attributed to the machine? Round your answers to the nearest dollar. Year 1 2 3 4 Supplemental operating CF $ $ $ $
Transcribed Image Text:Gator Bicycles just bought a new brake calibration machine that is expected to generate $36,000 in new revenues each of the next four years without increasing. cash operating costs. The machine will be depreciated according to the MACRS 3-year class of assets, and its depreciable basis is $144,000. If Gator's marginal tax rate is 35 percent, what are the annual supplemental operating cash flows attributed to the machine? Round your answers to the nearest dollar. Year 1 2 3 4 Supplemental operating CF $ $ $ $
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