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Farmington Enterprises wishes to estimate the After Tax Future worth of the following investment. It will use SNL (straight line) depreciation to estimate its depreciation.
Farmington Enterprises wishes to estimate the After Tax Future worth of the following investment. It will use SNL (straight line) depreciation to estimate its depreciation. Interest rate will be 1 = 6%, income tax rate will be 40% Initial cost of new machinery to be considered is 1,000,000. Salvage Value after 1ft years is 100,000. Cash flow is increased revenue 600,000 but with increased operating and maintenance expenses of 200,000 for each year (uniformly). Analyze the problem showing yearly depreciation, Taxable Income, Taxes and After Tax Cash Flow as well as the future value for the system at t= 10 years
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