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Please help thank you Mystic Beverage Company is considering purchasing a new bottling machine. The new machine costs $274,439, plus installation fees of $15,960 and
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Mystic Beverage Company is considering purchasing a new bottling machine. The new machine costs $274,439, plus installation fees of $15,960 and will generate earning before interest and taxes of $72,916 per year over its 5-year life. The machine will be depreciated on a straight-line basis over its 5-year life to an estimated salvage value of 0. Mystic's marginal tax rate is 0%. Mystic will require $24,450 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 decimalsStep by Step Solution
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