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Blueridge Vet Clinic buys a diagnostic piece of equipment for $115,000. The machine will be depreciated on a straight-line basis for 10 years with a
Blueridge Vet Clinic buys a diagnostic piece of equipment for $115,000. The machine will be depreciated on a straight-line basis for 10 years with a salvage value of $12,000. The company expects the machine to be able to generate after-tax cash flows of $44,000 in each of the 10 years, and then it will sell the machine for $12,000 at the end of 10 years. What are the cash flows related to this purchase for each of the next 10 years? Ignore taxes.
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