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Question 20 (3 points) A company is examining a new production system with an installed cost of $450,000. This fixed asset qualifies for 100 percent
Question 20 (3 points) A company is examining a new production system with an installed cost of $450,000. 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 $150,000 per year in pretax operating costs, and the system requires an initial investment in net working of $39,000 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 5 net cash flow? Enter your answer as dollars with 0 digits to the right of the decimal point in the box shown below. Your
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