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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
Omentation 2022W - Student Services - Faculty se 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 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 $0 $450,000 $500,000 $150,000 5 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 $30,000 $650,000 $500,000 $200,000 Problem 1) What is Option 1's annual net cash flow from operating activities
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