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Cumulative XYZ Company is evaluating the purchase of a new machine for $200,000 plus $10,000 in installation costs. They plan to sell the machine at
Cumulative XYZ Company is evaluating the purchase of a new machine for $200,000 plus $10,000 in installation costs. They plan to sell the machine at the end of 3 years for $45,000. MACRS 3 year. With the more efficient machine they expect labor savings of $72,000, 102,000, and 70,000 respectively over the next 3 years. Tax 40%. Answer the below question.
What is terminal cash flow for the project?
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