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Last year you purchased a machine for $2M. You want to sell it today for $1.75M and replace it with a new machine that costs

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Last year you purchased a machine for $2M. You want to sell it today for $1.75M and replace it with a new machine that costs $3M. The replacement will increase EBITDA by $100,0000. What are the cash flows at the time of replacement? The tax rate is 35%. (Assume no taxes on the disposition of assets.)

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