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answer all questions where blanks c. Calculate the operating cash flow for machines: begin{tabular}{|c|c|c|} hline & Machine Y & hline Profit before tax &
answer all questions where blanks
c. Calculate the operating cash flow for machines: \begin{tabular}{|c|c|c|} \hline & Machine Y & \\ \hline Profit before tax & R & R \\ \hline Less: Tax & (R & (R \\ \hline NOPAT & R & R \\ \hline Add: Wear \& tear & R & R \\ \hline OCF & R & R \\ \hline \end{tabular} Lites Ltd is considering choosing between two machines, machine Y or machine Z. The corporate tax rate is 28% and the company cost of capital is 10%. In terms of the SARS guidelines, the effective life of elther machine Y or Z is five years an the company will use this to determine the depreciation deductions on a straight-line basis. The following information is relevant and note that the profit before tax. REQUIRED: a. Determine the initial investment for both machines: Machine Y: I Machine Z Step by Step Solution
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