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PROBLEM n Corporation plans to purchase a new End of Year Net Cash Flow From Sale (S) machine that costs $120,000, has six years of
PROBLEM n Corporation plans to purchase a new End of Year Net Cash Flow From Sale (S) machine that costs $120,000, has six years of economic life, and generates a net annual cash flow of $40,000 at the end of years 1-6 (all cash flows have taken into account depreciation and taxes). The firm also has the option to sell the machine at the end of years 1-6. The following are the net cash flows Owen will receive from the sale of the machine at the end of each year. 100,000 85,000 75,000 60,000 30,000
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