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A firm had contemplated buying a new machine for $3 million and the cost of which would be depreciated over 10 years. You will be

A firm had contemplated buying a new machine for $3 million and the cost of which would be depreciated over 10 years. You will be able to depreciate 10% of the machine this year. If the firm has a tax rate of 25%, what would have been the impact of such a purchase on the cash flow of the firm? It would have an additional:

$7.500.000 in cash

It would have $2,925,000 less cash

It would have $1.500,000 less cash

It would have $3,000.000 less cash

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