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please solve Question 3 (1 point) A company is examining a new production system with an installed cost of $460,000. This fixed asset qualifies for
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Question 3 (1 point) A company is examining a new production system with an installed cost of $460,000. This fixed asset qualifies for 100 percent bonus depreciation in the first year. This production system can be scrapped for $55,000 at the end of the project's five-year life. This production system will save the firm $155,000 per year in pretax operating costs, and the system requires an initial investment in net working of $29,000 which must be maintained until the end of the project's five-year life. The tax rate is 21 percent. What is the projects year 1 net cash flow? Enter your answer as dollars with 0 digits to the right of the decimal point in the box shown below. Your Answer: Answer Question 4 (1 point) A company is examining a new production system with an installed cost of $420,000. This fixed asset qualifies for 100 percent bonus depreciation in the first year. This production system can be scrapped for $59,000 at the end of the project's five-year life. This production system will save the firm $140,000 per year in pretax operating costs, and the system requires an initial investment in net working of $31,000 which must be maintained until the end of the project's five-year life. The tax rate is 21 percent. What is the project's year 5 net cash flow? Enter your answer as dollars with 0 digits to the right of the decimal point in the box shown belowStep by Step Solution
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