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Christopher'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
Christopher'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 13,000 units with an expected selling price of $19, prime costs of $9 per unit, and a fixed cost allocation of $3 per unit. Annual depreciation on the machine is $10,000, and the tax rate of the company is 32%. What is the annual cash flow generated from the new machine? A. $81,600 B. $91,600 C. $55,080 D. $65,080
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