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PLEASE SHOW YOUR WORK Persius Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in
PLEASE SHOW YOUR WORK
Persius Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $100,000. The equipment will have an initial cost of $400,000 and have a 5 year life. If the salvage value of the equipment is estimated to be $75,000, what is the annual net cash flow? Please show your work and your answer (A, B, C, or D). A. $25,000 B. $35,000 C. $165,000 D. $175,000Step by Step Solution
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