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Momis Cookies, inc, is considering the purchase of a new cookie oven. The onginal cost of the old oven was $30,000: it is now five

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Momis Cookies, inc, is considering the purchase of a new cookie oven. The onginal cost of the old oven was $30,000: it is now five years old, and it has a current market value of $13,333.33. The old overi is being depreciated over a 10-year ife toward a zero estimated salvage value on a straight line basis, resulting in a curtent book value of $15,000 and an annuai depreciation expense of $3000. The old oven can be used for six more years but has no matket value after its depreciable life is over. Management is contemplating the purchase of a new oven whose cost is $25,000 and whose estimated salvage value is zero Expected before tax cash savings from the new oven are $4,000 a year over its full ilfe. you can use bonus depreciation on the oven, and the cost of capital is 10 percent Assume a 21 percent tax iate. What will the cash fiows tor this project be? (Round your answers to the neorest dollor omount.)

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