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Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball for $80,000 and sell its old low-pressure glueball,

Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball for $80,000 and sell its old low-pressure glueball, which is fully depreciated, for $14,000. The new equipment has a 10-year useful life and will save $18,000 a year in expenses. The firms tax rate is 40%. Gluon uses straight-line depreciation. Assume the new machine will have no salvage value. What are the free cash flows for this purchase for years 0-10?

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