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A new manufacturing machine is expected to cost $278,000, have an eight-year life, and no salvage value. The machine will yield revenue of $500,000, and
A new manufacturing machine is expected to cost $278,000, have an eight-year life, and no salvage value. The machine will yield revenue of $500,000, and will incur cash operating expenses of $420,000, in addition to the depreciation expense (using the straight line method) and income tax expense (30% tax rate) annually. Compute the expected annual net cash flows as a result of investing in this machine
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