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Previous Page Next Pase Use the following information to answer the next 5 questions: Page 5 of 6 The Board of Directors of National Brewing
Previous Page Next Pase Use the following information to answer the next questions: Page of The Board of Directors of National Brewing Inc. is considering the acquisition of a new still. The still is priced atbut would requirein transportation costs andfor installation. Purchase of the still would increase inventories by accounts receivable by and accounts payable by The still has a useful life of years but will be depreciated using year MACRS. The applicable MACRS depreciation rates are, and. It is expected to have a salvage value ofat the end of years. The still would increase revenues byin yearin year andin years and Annual operating costs are projected to beof revenues. The firm's marginal tax rate is and the project's cost of capital is Question point What is the initial outlay?What is the Year operating cash flow OCF $ $ $ $ What is the year operating cash flow OCF $ $ $ $
What is the aftertax salvage value ATSV $ $ $ $
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