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Given the following information: Initial investment in fixed assets - $20,000; initial investment in net working capital = $5,000;life = 4 years; cost savings =
Given the following information: Initial investment in fixed assets - $20,000; initial investment in net working capital = $5,000;life = 4 years; cost savings = $10,000 per year, salvage value = $4,000;Straight-line depreciation to zero; tax rate - 21%; discount rate -15% What would be the operating cashflows from years 1 to 3: A) 7900 B) $10,500 C) $8950 D) $10,000 E) $9850
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