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5. A new machine costing $100,000 is expected to save the McKaigBrick Company $15,000 per year for 12 years before depreciation and taxes. The machine
5. A new machine costing $100,000 is expected to save the McKaigBrick Company $15,000 per year for 12 years before depreciation and taxes. The machine will be depreciated on a straight-line basis for a 12-year period to an estimated salvage value of $0. The firms marginaltaxrateis40percent.Whataretheannualnet cash flows associated with the purchase of this machine? Also compute the net investment (NINV) for this project.
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