Question
Blaylock Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of trenching machines. The outlay
Blaylock Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of trenching machines. The outlay required is $700,000. The NC equipment will last five years with no expected salvage value. The expected after-tax cash flows associated with the project follow:
| Year | Cash Revenues | Cash Expenses |
| 1 | $1,200,000 | $1,000,000 |
| 2 | 1,200,000 | 1,000,000 |
| 3 | 1,200,000 | 1,000,000 |
| 4 | 1,200,000 | 1,000,000 |
| 5 | 1,200,000 | 1,000,000 |
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Internal Auditing: Principles And Techniques
Authors: Richard L. Ratliff, W. Wallace, Walter B. Mcfarland, J. Loeboecke
1st Edition
0894131672, 978-0894131677
