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Brandon's Enterprises has purchased a new machine tool which will allow the company to improve the efficiency of its operations. On an annual basis, the
Brandon's Enterprises has purchased a new machine tool which will allow the company to improve the efficiency of its operations. On an annual basis, the machine will produce units with an expected selling price of $ prime costs of $ per unit, and a fixed cost allocation of $ per unit. Annual depreciation on the machine is $ and the tax rate of the company is
What is the annual cash flow generated from the new machine?
A $
B $
C $
D $
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