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A company is considering a new project. The project requires an investment of $1,200,000 that will be depreciated on a straight-line basis over the project's
A company is considering a new project. The project requires an investment of $1,200,000 that will be depreciated on a straight-line basis over the project's 10-year life. The machine is expected to save the company $500,000 per year, but in order to operate it, the factory must hire an employee with a salary of $100,000. The relevant discount rate is 12% and the corporate tax rate is 25%.
Find the Cash Flows for Years 0-10
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