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Company X's management is evaluating a piece of machinery that costs $2 million. This machine will provide revenues of $500,000 each year and operating coats

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Company X's management is evaluating a piece of machinery that costs $2 million. This machine will provide revenues of $500,000 each year and operating coats will be $130,000 each yew. it is to be depreciated to a zero book value over ten sears using the straight-line method. The company will use the machine for only eight yearn. At (he end of eight years it is expected to have no salvage value. The now machine will require additional working capital of $200.000 Company X is profitable and experts to continue paying taxes at 35%. Given the risk involved in this project, investors require a return of 12%. Answer the following questions What is the time-zero cash flow of buying the machine? What is the recurring annual cash flow, for years I through 8, of buying the machine? What is the end-period (year 8) cash flow effect of buying the machine? This is in addition to the year 10 cash flow in part (b). Should the company buy the machine

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