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PLEASE REMEMBER CASH FLOW DIAGRAM Consider a project with an initial investment of $50,000, a 8 year useful life and study period), and a $12,000
PLEASE REMEMBER CASH FLOW DIAGRAM
Consider a project with an initial investment of $50,000, a 8 year useful life and study period), and a $12,000 salvage value. You expect an annual net revenue of $17,000 (before tax), a MARR before tax of 15%, and an effective tax rate of 35%. The capital equipment is to be depreciated using MACRS ADS and a 7 year class life. Using after-tax cash flow analysis, determine if this is a good investment. Draw cash flow diagrams for all problems involving cash flowsStep by Step Solution
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