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A firm is looking at replacing a machine. The new machine will cost $751516 and in 5 years time the machine could be sold for
A firm is looking at replacing a machine. The new machine will cost $751516 and in 5 years time the machine could be sold for $162982. The allowable depreciation rate is 13.7% on a straight line basis. The company tax rate is 30%. What is the terminal cash flow assuming the project is evaluated over a 5 year investment horizon?
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