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Madison Manufacturing is considering a new machine that costs $1,217,250.0 and would reduce pre-tax manufacturing costs by $304,313.0 annually. Madison would use the 3-year MACRS

Madison Manufacturing is considering a new machine that costs $1,217,250.0 and would reduce pre-tax manufacturing costs by $304,313.0 annually. Madison would use the 3-year MACRS method to depreciate the machine, and management thinks the machine would have a value of $146,070.0 at the end of its 5-year operating life. The applicable depreciation rates are 33.33%, 44.45%, 14.81%, and 7.42%. Working capital would increase by $182,588.0 initially, but it would be recovered at the end of the projects 5-year life. Madisons marginal tax rate is 45.00%, and a 15.00% WACC is appropriate for the project. What is year 5 net cash flow? $3,291,750 $430,299 $465,311 $584,033 $801,811

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