Question
A firm has invested $700 in a new machine that is expected to last for the next 6 years. The machine will be depreciated on
A firm has invested $700 in a new machine that is expected to last for the next 6 years. The machine will be depreciated on a straight line basis down to zero by the end of its 6 year life. The firm projects that the machine will generate consecutive annual cash inflows of $650 beginning in one year and will generate consecutive annual cash outflows at 280 also beginning in one year.. Assuming the tax rate of 38%, determine the firm's cash flow next year.
$
Place your answer to dollars and cents. Do not include a dollar sign or a comma in your answer.
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