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Jones Crusher Company is evaluating the proposed acquisition of a new machine. The machine will cost $ 1 9 0 , 0 0 0 ,
Jones Crusher Company is evaluating the proposed acquisition of a new machine. The
machine will cost $ and it will cost another $ to modify it for special use by
the firm. The machine falls into the MACRS year class, and it will be sold after years of
use for $ The machine will require an increase in net working capital of $ and
will have no effect on revenues, but is expected to save the firm $ per year in before
tax operating costs, mainly labor. In the terminal year, there is a decrease in net working
capital of $ The company's marginal tax rate is What is the machine's ending
book value in Year Round to the whole number.
MACRS Depreciation Rates
Then, what are the terminal year operating cash flows OCF Round to a whole number.
and
Based on the same data in Question what are the terminal year cash flows? Round to a whole number.
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