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For your answer. Do not use dollar signs, percentage signs nor periods nor commas. Do not use decimals. i.e. = 123456789 Ignore taxes, depreciation and
For your answer. Do not use dollar signs, percentage signs nor periods nor commas. Do not use decimals. i.e. = 123456789 Ignore taxes, depreciation and CCA tax shieldsRound all dollars value to the nearest thousand
Faculty Student Services - Orientation 2022W - ABC is considering 2 alternatives to replace an old machine using Net Present Value to evaluate their options Option 1 Build the required machine. Option 2 Buy the required machine Assume - the time taken to build the machine is the same as installing a purchased machine. Cost of Capital is 8% 5 $0 Option 1 - Build - machine's estimated useful life is there is no salvage value at the end of the five years estimated cost to build the machine is - Annual operating revenue for the 5 years Annual operating expenses for the 5 years $450,000 $500,000 $150,000 Option 2 - Buy - machine's estimated useful life is the salvage value at the end of the five years the purchase price of the machine Annual operating revenue for the 5 years - Annual operating expenses for the 5 years 5 $30,000 $650,000 $500,000 $200,000 Problem 2) What is Option 2's annual net cash flow from operating activities
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