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Finalexamo Inc. is considering the purchase of a new machine for 600,000. It will be fully depreciated at the time of purchase, used for three

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Finalexamo Inc. is considering the purchase of a new machine for 600,000. It will be fully depreciated at the time of purchase, used for three years, and then sold for an estimated market value of $200,000. Purchase of the new machine will cause an increase in net operating working capital by $100,000. Operating costs are expected to decrease by $300,000 per year. The tax rate is 25% and the cost of capital is 20%. Questo sit What the free cash flow for OY 0.000) 0850.000) 1600,000) (550,000) (500,000) (300,000) O (400,000) Question 60 point What the after tax cash flow from the sale of the machine at the end of year 3 325.000 300,000 375,000 225,000 200,000 150,000 Question 61 (1 point) What is the Free Cash Flow for year 3? 300,000 325,000 475,000 150,000 225,000 200,000 Question 62 (1 point) Using NPV as your sole decision making criterion, should you accept this project? Cannot be determined Yes No Question 57 (1 point) What is the Free Cash Flow for year 0? (450,000) (850,000) (600,000) (550,000) (500,000) (300,000) (400,000) Question 60 (1 point) What is the after tax cash flow from the sale of the machine at the end of year 3? 325,000 300,000 375,000 225,000 200,000 150,000 Question 62 (1 point) Using NPV as your sole decision making criterion, should you accept this project? Cannot be determined Yes No

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