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D Question 4 2 pts A company is purchasing a new machine which will cost $130,000 with additional shipping costs of $5,000 and set up

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D Question 4 2 pts A company is purchasing a new machine which will cost $130,000 with additional shipping costs of $5,000 and set up and installation costs of $12,000. An additional $8,000 in Net Working Capital will be required. Project life is five (5) years. The project will increase revenues by $90,000 each year and operating costs will increase by $32,000 annually. The machine has a class life of seven (7) years and will be depreciated using the straight line method. The company will sell the machinery for $50,000 at the end of five years. The company's cost of capital is 12% and the marginal tax rate is 34%. Compute the non-operational cash flows (sometimes called terminal cash flows) the company will receive from the sale of the machine. $55,280 $47,146 O $48,277 $83,467

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