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Crossroad Corporation is trying to decide whether to invest to automate a production line. If the project is accepted, labor costs will decrease by $
Crossroad Corporation is trying to decide whether to invest to automate a production line. If the project is accepted, labor costs will decrease by $ per year. However, other cash operating expenses will increase by $ per year. The equipment will cost $ and is depreciable over years using simplified straight line to a zero salvage value. Crossroad will invest $ in net working capital at installation. The firm has a marginal tax rate of Calculate the firm's annual cash flows associated with the new project.
Set your calculator to decimal places and round to a whole number at the end.
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