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A Computer costing $20,000 in Year 0 can generate 5,000 cost savings for the next four years. The depreciation for Year 1, 2, 3, and
A Computer costing $20,000 in Year 0 can generate 5,000 cost savings for the next four years. The depreciation for Year 1, 2, 3, and 4 are .333, .445, .148, .074, respectively. Assume the salvage value for the computer will be zero after the fourth year. Based on a tax rate of 30%, calculate the Cash Flow for year 1 only.
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