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Calculate the change in operating cash flow for each year for the following information: The equipment costs $200,000 and is depreciated using MACRs over five
Calculate the change in operating cash flow for each year for the following information:
The equipment costs $200,000 and is depreciated using MACRs over five years. The equipment will reduce operating expenses by $ 25,000 per year for five years.
The tax rate is 40%
Working capital needs increase by $10,000 when the machine is placed in service and reduced at the end of the life of the machine. There is no salvage value at the end of five years.
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