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A $ 2 5 0 , 0 0 0 machine with a 1 5 - year class life was purchased 3 years ago and has
A $ machine with a year class life was purchased years ago and has a current salvage value of $ The machine will now be replaced with a new machine costing $ with a year class life. The new machine will not increase sales but will decrease operating costs by $ per year. Simplified straight line depreciation is employed for both machines, and the marginal corporate tax rate is percent.
What is the initial outlay for the project?
a $
b $
c $
d $
e $
What is the incremental annual cash flow associated with the project in year
a $
b $
c $
d $
e $
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