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A company purchases a new machine for $ 1 0 , 0 0 0 that it plans to use for 5 years. What is the

 

A company purchases a new machine for $10,000 that it plans to use for 5 years. What is the impact on cash flow and on net income in YEAR 2?

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A decrease of $2,000 to both net income and cash flow.

An increase of $2,000 to net income and a decrease of $2,000 to cash flow.

No impact on cash flow, a decrease of $2,000 to net income.

None of the Answers is Correct.

No impact to either net income nor cash flow.

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