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Home | myLU Lu Homework: Discount Cash-Flow X Question 11 - Homework: Disco( x Johnny's Lunches is considering x education.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%25BA%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproduc dwi... Shalimar Weather -... G

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Home | myLU Lu Homework: Discount Cash-Flow X Question 11 - Homework: Disco( x Johnny's Lunches is considering x education.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%25BA%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproduc dwi... Shalimar Weather -... G Google ( https://searchsafe.n... New Tab Bookmarks Discount Cash-Flow Analysis Assignment @ Saved Bottoms Up Diaper Service is considering the purchase of a new industrial washer. It can purchase the washer for $3,000 and sell its old washer for $800. The new washer will last for 6 years and save $600 a year in expenses. The opportunity cost of capital is 9%, and the firm's tax rate is 21%. a. If the firm uses straight-line depreciation over a 6-year life, what are the cash flows of the project in years 0 to 6? The new washer will have zero salvage value after 6 years, and the old washer is fully depreciated. (Negative amounts should be indicated by a minus sign.) b. What is project NPV? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. What is NPV if the firm investment is entitled to immediate 100% bonus depreciation? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual operating cash flow in year 0 a Annual operating cash flow in years 1 to 6 b. NPV C . NPV

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