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A company is considering the purchase of a new machine for $36,100. Management predicts that the machine can produce sales of $12,200 each year for
A company is considering the purchase of a new machine for $36,100. Management predicts that the machine can produce sales of $12,200 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhead totaling $9,000 per year including depreciation of $2,600 per year. The companys tax rate is 40%. What is the annual cash flow for the new machine?
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