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moms cookie incorpated, is considering the purchase od a new cookie oven. the orginial cost of the oven was $ 3 0 , 0 0

moms cookie incorpated, is considering the purchase od a new cookie oven. the orginial cost of the oven was $30,000: it is now 5yrs old, and it has a current market value of $13333.33. the old oven is being depeciated over a 10 year life toward a zero estimated salvage value on a straight- line basisresulting in a current book value of $15,000 and an annual depreciation expense of $3,000. the old oven can be used for 6 more years but has no market value after its deprecitable life is over. management is contemplating the purchase of a new oven whose cost is $25000 and whose estimated salvage value is zero. expected before-tax cash saving from the new oven are $4000a year over its full life, you can use bonus depreciation on the oven and the cost of capital is 10%. Assuming a 21% tax rate. what will the cash flows for this project be? year 0, year 1, year 2, year 3, year4, year 5, year 6?

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