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In a project that will last for 3 years, revenues will increase by 1 2 0 , 0 0 0 TL each year, and costs

In a project that will last for 3 years, revenues will increase by 120,000 TL each year,
and costs will decrease by 50,000 TL each year. The cost of the acquired asset is
1,000,000 TL, and the firm uses the declining balance method for depreciation
(Depreciation rate is 40%). Calculate the operating cash flows for 3 years. The tax rate
is 30%.
2. In an investment project, an old machine bought for 600,000 TL 3 years ago with a
useful life of 10 years will now be sold for 300,000 TL. What will be the cash flow
from the sale of the old machine, given that the firm uses the straight-line depreciation
method? (Tax rate is 40%)
3. A company is planning to buy a machine. The cost of the new machine is 50,000 TL
and the transportation and installation cost is 30,000 TL. The old machine is fully
depreciated and can be sold for 7,000 TL as soon as the new machine is acquired. The
useful life of the new machine is 5 years and the company uses the straight-line
depreciation method. What should be the cash inflow/outflow related to this
investment? (Tax rate is 40%)

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