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EHUS vas Veridian Dynamics is considering the purchase of a new cloning machine, which will cost $80 million plus an additional $8 million to ship

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EHUS vas Veridian Dynamics is considering the purchase of a new cloning machine, which will cost $80 million plus an additional $8 million to ship and install. The new machine will replace the existing machine, which has zero book value and could be sold today for $24 million. The new machine has a useful life of 4 years, and will be depreciated to zero using the straight line method. The new machine will require 58 million worth of spare parts to be purchased initially and held in inventory for the next 4 years to make sure the machine operates smoothly. These spare parts will be sold at the end of 4 years and the entire $8 million will be recaptured. The new machine will increase sales by $180 million per year, increase cost of goods sold by $80 million per year, and decrease operating expenses by $22 million pear year over the next 4 years. Veridian Dynamics expects to sell the new machine for $8 million at the end of 4 years. Veridian Dynamics's income tax rate is 25% and its cost of capital is 15% What is the Terminal Cash Flow? (in 9 millions) O $14 O $8 $6 O $18

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