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Help! Cash Flow Budget: A small business owner is considering an investment in some new equipment. She would like to estimate the impact of this

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Cash Flow Budget: A small business owner is considering an investment in some new equipment. She would like to estimate the impact of this investment on the business' cash flows and income in the first year. This includes the loan payments (principal and interest) made in the first year. Use the information provided to complete the partial cash flow budget in the table and briefly answer the question below the table. a. Purchase of new equipment for $250,000 b. The equipment purchase is financed using: i. 10% down payment ii. $50,000 trade-in credit for old equipment with a tax basis of $60,000 iii. 8-year loan for the remainder c. Total interest expenses on the loan of $10,000 d. Total principal payments on the loan of $13,000 e. Maintenance expenses on the new equipment are estimated to be $2000 f. Equipments will be depreciated over 5 years using the straight-line method

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