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Clarke Company purchased equlpment for $100,000 that is expected to generate cash inflows from operations of $30,000 in each of the next 5 years. The

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Clarke Company purchased equlpment for $100,000 that is expected to generate cash inflows from operations of $30,000 in each of the next 5 years. The machine wil be depreciated on a straight-line basis with no saivage value. Assume the following present value factors and dotermine the net present value of the investrnent by Clark Company. $12,100$16,288 QUESTION 6 A corporation with taxabie income of $100,000 and a tax rate of 40% is selling a machine. The original cost of the machine is $3,000, and the machine has been depreciated $4,000. If the machine is sold for $6,000, the amount of aftor tas cash generatod by this sale would be: $(1,600)$4,400$5,200$6,000

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