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30. Project G has cash inflows of $800 each year and cash outflows of $240 each year. Assuming a 30% tax rate, which of the

30. Project G has cash inflows of $800 each year and cash outflows of $240 each year. Assuming a 30% tax rate, which of the following comes closest to Project Gs cash flow in year 1 if we assume straight line depreciation of $50?

a. $407

b. $410

c. $413

d. $416

e. $419

29. Your firm is considering the purchase of a machine that costs $10,000. The machine has a useful life of 5 years over which it will be depreciated using straight-line depreciation assuming zero salvage value. During the life of the machine, it is expected to generate revenues of $8,000 and cost $3,000 each year. What is the after tax cash flow in year 3, assuming a tax rate of 30%?

a. $2,100

b. $3,100

c. $4,100

d. $5,100

e. $6,100

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