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Q15. 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, $ -13,000 –25,000 AOC, $ per Year -1,300 –400 Salvage Value, $ 5,000 6,000 Life, Years 3 6     a) The incremental cash flow between machines B and A in year 0 is $ . 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 $ .

Q15. 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, $ -13,000 –25,000 AOC, $ per Year -1,300 –400 Salvage Value, $ 5,000 6,000 Life, Years 3 6     a) The incremental cash flow between machines B and A in year 0 is $ . 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 $ .

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q15. 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, $

-13,000

–25,000

AOC, $ per Year

-1,300

–400

Salvage Value, $

5,000

6,000

Life, Years

3

6

 

 

a) The incremental cash flow between machines B and A in year 0 is $ .

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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