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After Tax Cash Flows Decades Lab plans to purchase a new machine. The cost of the machine is $200,000 and is expected to have a

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After Tax Cash Flows Decades Lab plans to purchase a new machine. The cost of the machine is $200,000 and is expected to have a useful life of 5 years. Depreciation is calculated using straight line with no salvage value. Savings in cash operating costs are expected to be $60,000 per year. However, additional working capital of $30,000 is required throughout the life of the machine, but will be recovered at the end of the machine's useful life. At the end of life of the machine, Decades is able to sell the machine for $20,000. Decades tax rate is 40%. The company uses straight-line depreciation. a. What is the amount of the total initial investment? b. What is the net cash inflow for year 1? c. What is the net cash inflow for year 5

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