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Mystic Beverage Company is considering purchasing a new bottling machine. The new machine costs $197,832, plus installation fees of $17,102 and will generate earning before
Mystic Beverage Company is considering purchasing a new bottling machine. The new machine costs $197,832, plus installation fees of $17,102 and will generate earning before interest and taxes of $88,512 per year over its 6-year life. The machine will be depreciated on a straight-line basis over its 6-year life to an estimated salvage value of 0. Mystics marginal tax rate is 0%. Mystic will require $37,812 in NWC if the machine is purchased. Determine the annual cash flow in year 3 if the machine is purchased. round your answer to two decimals | ||
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