First, we will start with annual depreciation. We will always use straight-line depreciation in this course Consider a firm that purchased an equipment for $165,505 and incurred an additional $11,515 for shipping and installation. What will be the annual depreciation expense if the equipment is expected to last 12 years and have a salvage value of $6,280 (using straight-line depreciation)? round your answer to two decimals

ext, we will take what we know about depreciation, and also what we know about EBIT and now put it all together to calculate operating cash flow

Mystic Beverage Company is considering purchasing a new bottling machine. The new machine costs $193,869, plus installation fees of $15,865 and will generate earning before interest and taxes of $53,897 per year over its 8-year life. The machine will be depreciated on a straight-line basis over its 8-year life to an estimated salvage value of 0. Mystics marginal tax rate is 0%. Mystic will require $22,187 in NWC if the machine is purchased. Determine the annual cash flow in year 3 if the machine is purchased. round your answer to two decimals