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Crossroad corporation is trying to decide whether to invest to automate a production line. If the project is accepted, labor cost will decrease by $
Crossroad corporation is trying to decide whether to invest to automate a production line. If the project is accepted, labor cost 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 networking capital at installation. The firm has a marginal tax rate of Calculate the firms annual cash flows associated with the new project.
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