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Corn Doggy, Inc. produces and sells corn dogs. The corn dogs are dipped by hand. Austin Beagle, production manager, is considering purchasing a machine that
Corn Doggy, Inc. produces and sells corn dogs. The corn dogs are dipped by hand. | |||||||
Austin Beagle, production manager, is considering purchasing a machine that will make | |||||||
the corn dogs. Austin has shopped for machines and found that the machine he wants | |||||||
will cost $160,000. In addition, Austin estimates that the new machine will increase the | |||||||
company's annual net cash inflows by $53,000. The machine will have a 16-year useful | |||||||
life and no salvage value. | |||||||
Instructions | |||||||
A. | Identify the following amounts: | ||||||
1. | Initial Cash Outlay | ||||||
2. | Differential Annual Operating Cash Flow | ||||||
3. | Differential Annual Net Income |
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