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Homer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in

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Homer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $100,000. The equipment will have an initial cost of $400,000 and have a 5-year life. If the salvage value of the equipment is estimated to be $75,000, what is the annual net cash flow? Murple Choice $35.000 $25.000 $175.000 O $9.000

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