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A company is considering replacing an old machine. The new machine costs $ 1 0 , 0 0 0 but, because of its increased efficiency,
A company is considering replacing an old machine. The new machine costs $ but, because of its increased efficiency, it will allow the company to reduce inventory on hand by $ when the old machine is replaced. The old machine also has a $ net salvage value. Calculate the Year cash flow the company should use when evaluating the purchase of the new machine.
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