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MOTOR CORP Inc. just bought a new lathe for $60,000. It is depreciated over its 10-year life using straight line depreciation method. There is no
MOTOR CORP Inc. just bought a new lathe for $60,000. It is depreciated over its 10-year life using straight line depreciation method. There is no salvage value at the end of its useful life. The new lathe will increase revenues by $22,000 per year with no increase in operating cost. If MOTOR CORPs marginal tax rate is 35 percent, what is the net cash flow in the first year?
Question 7 options:
| none of the above |
| $40,000$ |
| $16,400 |
| $24,700 |
| $7,700 |
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