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Exercise 12-36 Blaylock Company wants to buy a numerically controlled (NC) machine to be used in produc ing specially machined parts for manufacturers of tractors.

Exercise 12-36

Blaylock Company wants to buy a numerically controlled (NC) machine

to be used in produc ing specially machined parts for manufacturers of tractors. The outlay required is $384,000. The NC equipment will last 5 years with no expected salvage value. The expected after-tax cash flows associated with the project follow:

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