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Koosman Plating Corporation is considering purchasing a machine for $3,000,000. The machine will generate a constant after-tax income of $150,000 per year for 15 years.
Koosman Plating Corporation is considering purchasing a machine for $3,000,000. The machine will generate a constant after-tax income of $150,000 per year for 15 years. The firm will use straight-line (SL) depreciation for the new machine over 10 years with residual value. no a. What is the payback period for the new machine, under the assumption that cash inflows occur evenly throughout the year? Show formula (2 points) and give answer (3 points) Payback Period Formula = Payback Period Answer= b. What is the annual after-tax cash flow for years 1-5? Show formula (4 points) and give answer (6 points) After Tax Cash flow formula = After Tax Cash flow years 1-5 answer =
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