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Capital Budgeting Anderson Corporation is considering investing $180,000 in equipment to produce a new product. Useful service life of the equipment is estimated to be

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Capital Budgeting Anderson Corporation is considering investing $180,000 in equipment to produce a new product. Useful service life of the equipment is estimated to be 10 years, with zero salvage value. Straight-line depreciation will be used. The company estimates that production and sale of the new product to be produced by this new machincry will increase net income by $12,000 a year. What is the annual future cash flow for this investment? (Show your work) Using estimated cash flow numbers, please calculate the payback period for this investment years Assuming the company has a weighted average cost of capital of 11%, please calculate the present value of the estimated future cash flows Having calculated the present value of the estimated future cash flows, should Anderson Corporation make this investment

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