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A manufacturer of dance and exercise apparel is considering replacing an existing piece of equipment with a more sophisticated machine. The following information is given.
A manufacturer of dance and exercise apparel is considering replacing an existing piece of equipment with a more sophisticated machine. The following information is given. The firm pays 40 percent taxes on ordinary income and capital gains. Summarize the incremental after-tax cash flow (relevant cash flows) for years n=1 through n=6. ( 8 points)
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