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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
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 $136,300. The equipment will have an initial cost of $470,000 and have a 5-year life. If the salvage value of the equipment is estimated to be $8,000, what is the annual net cash flow? Multiple Choice $228,700 $144,300 $43,900 $128,300
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