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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 $165,000. The equipment will have an initial cost of $476,000 and have a 5 year life. If the salvage value of the equipment is estimated to be $151,000, what is the annual net cash flow?
$14,000
$100,000
$316,000
$230,000
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