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NachoTruck Inc just purchased a new cheese making machine $ 8000 . The useful life of the machine 6 years and will be depreciated on
NachoTruck Inc just purchased a new cheese making machine $8000. The useful life of the machine 6 years and will be depreciated on a straight line basis down to zero by the end of its 6 year life. NachoTruck projects that the machine will generate consecutive annual cash inflows of $7500 beginning in one year and will generate consecutive annual cash outflows at 3000 also beginning in one year. Assuming the tax rate of 35%, determine the firm's cash flow next year.
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