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Homer Corporation 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 Corporation 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 of $153,000. The equipment will have an initial cost of $510,000 and have a 5 year useful life. If the salvage value of the equipment is estimated to be $27,000, what is the annual increase in net cash flow?
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