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An asset in the five-year MACRS property class costs $150,000 and has a zero estimated salvage value after six years of use. The asset will
An asset in the five-year MACRS property class costs $150,000 and has a zero estimated salvage value after six years of use. The asset will generate annual revenues of $320,000 and will require $80,000 in annual labor and $50,000 in annual material expenses There are no other revenues and expenses. Assume a tax rate of 40% Click the icon to view the MACRS depreciation schedules. Click the icon to view the interest factors for discrete compounding when i: 12% per yea (a) Compute the after-tax cash flows over the project life. Fill in the table below. (Round to two decimal places.) Period Net After-Tax Cash Flow S -150 thousand $ 126 thousand 3133.2 thousand 3 $125.52 thousand S thousand thousand sthousand
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