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Consider the following cash flow statement. A company is considering purchasing a machine that will produce 2.000 units with a unit sale price 50 $/unit.

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Consider the following cash flow statement. A company is considering purchasing a machine that will produce 2.000 units with a unit sale price 50 $/unit. The unit variable cost is 15 $/unit and the total fixed cost is $10,000/Yr. The machine, which costs $125,000 will be needed for five years, after which it will have a salvage value of $40,000. The company use special-percentage depreciation with the rates (special: 0.1429.0.2449.0.1749.0.1249. 0.0467) for next five years. Company will allocate $50,000 working capital. The tax rate is 40% and MARR is 15%. Compute the present worth value of the cash flows generated from this machine? Some required fields are calculated and you need to calculate the rest 0 1 2 3 4 5 50 50 50 50 50 2000 2000 2000 2000 2000 100000 100000 100000 100000 100000 15 30000 10000 15 30000 10000 15 30000 10000 15 30000 10000 15 30000 10000 Revenues: Unit Price Demand (units) Sales revenue Expenses: Unit variable cost Variable cost Fixed cost Depreciation Taxable Income Income taxes (40%) Net Income Depreciation Investment activities Investment Working capital Salvage Gains tax Net cash flow | 04 - 150000 -2611 Select one: a. 8822 O b. 83506 c. 120000 d. 100000 e. 130410 f. 21 1090

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