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HOSS, INC. is considering the purchase of a new machine for $450. This new machine will have a useful life of 10 years, an estimated

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HOSS, INC. is considering the purchase of a new machine for $450. This new machine will have a useful life of 10 years, an estimated salvage value of $100 and will be depreciated using the straight line method. The old machine, which had a cost of $650 has been deprecated for 5 years of its useful life of 15 years and is expected to have a salvage value of $50. It has been depreciated using the straight line method and could be sold now for $475 (any gain or loss on the sale of the machine is considered to be ordinary income for tax purposes The company's cost of capital is the new machine will save HOSS $50 per year in salaries HOSS, INC Stax rates 20% The net present value of the net outlay for the new machine considering the impact of the sale of the old machine including taxes which would be immediately paid upon the purchase and sale of the machinesis The represent value of the net cash flows resulting from the purchase of the new machine and the sale of the old machines The increase or decrease specify which in the net income after taxes of HOSS, INC. In the year that the purchase and sale of the machines and taxes are paid Please we al parts of the question increase or Decreases 0 Previous Save Answers Decrease

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