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Please use the following information to answer questions 17-20 Your firm is considering purchasing a new inventory management system which will costs you $120,000. The

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Please use the following information to answer questions 17-20 Your firm is considering purchasing a new inventory management system which will costs you $120,000. The new system will save your firm $320,000 before tax inventory related costs per year but it will involve an operating cost of $25,000 per year. In addition, the new system is more efficient than your existing one and you will be able to carry less total inventory and thus free up $42,000 in net working capital The new system will be depreciated over three years with straight-line depreciation In the end of the third year, the system will no longer work and therefore no salvage value is estimated. Tax rate is 34%. 17. The cash flow in Year 0 is $ 18. The impact on cash flow due to the change in net working capital in Year 1 ias 19. The cash flow in Year 2 is $ 20. The impact on cash flow due to the change in net working capital in Year 3 iss

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