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AJ Loving currently has yearly cash revenues of $240,000 and annual operating expenses of $185,000 that include $35,000 in depreciation. The firm's marginal tax rate
AJ Loving currently has yearly cash revenues of $240,000 and annual operating expenses of $185,000 that include $35,000 in depreciation. The firm's marginal tax rate is 40 percent. A new breaking machine can be purchased for $120,000 will increase revenues by $50,000 per year while operating expenses would increase to $205,000, including $42,000 in depreciation. Compute the company's annual incremental after-tax net cash flows
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