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Capital budgeting - Part 1: Bottoms Up Diaper Service is considering the purchase of a new industrial washer. It can purchase the washer for
Capital budgeting - Part 1: Bottoms Up Diaper Service is considering the purchase of a new industrial washer. It can purchase the washer for $9,000 and sell its old fully-depreciated washer for $2,200. The new washer will last for 6 years and save $2,700 a year in expenses. The opportunity cost of capital is 19%, and the firm's tax rate is 21%. The firm uses straight-line depreciation over a 6-year life. The new washer will have zero salvage value after 6 years, and the old washer is fully depreciated. What are the operating cash flows (Ct) of the project in years 1 to 6? C1= 2448 2448 , C2= 2448 C3= 2448 1 point Capital budgeting - Part 2: What is the operating cash flows of the project in year 0? C0= type your answer... 1 point Capital budgeting - Part 3: What is project NPV? (Round up to the nearest dollar) C4= 2448 , C5= 2448 C6=
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