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QUESTION 17 Gebelik Flow and put it all topaber (Point) YOU MUST COPY AND PASTE THE TABLE INTO THE ANSWERING BOX) ABC Corp. is considering

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QUESTION 17 Gebelik Flow and put it all topaber (Point) YOU MUST COPY AND PASTE THE TABLE INTO THE ANSWERING BOX) ABC Corp. is considering the purchase of another machine as an alternative to Project A. Calculate the NOCFs for Project B. The cost of the new machine is $310,000 Delivery and installation will cost $40,000 The company spent 560,000 building a new parking lot last year The project will require an immediate increase in working capital of 515,000, the working capital will be fully recaptured at the end of the Ife of the project The project will increase annual revenues by $155.000 and annual operating costs by S65,000 The project has an estimated tile of five years . The machine will be 100% deprecated via simple straight-line depreciation to a book value of $0.00 The company in using SIMPLE S Vine depreciation However, it machines atlive the depreciation period and on average have a salvage value of $40,000 after years of use. The company assumes the same for their machine The metto the current old machines sono parts for $20,000 which has been fully deprecated to a book value of 50.00 Assuma 12%. WACC and 35% marginal tax rate tion Completion Status Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Initial Outlay Inc Ch . -LAT Torille - NOCT Car

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