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Question 23 2.5 pts Elsinore Engineering Company is considering the purchase of a new machine. The new machine falls into the MACRS 7-year class, has

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Question 23 2.5 pts Elsinore Engineering Company is considering the purchase of a new machine. The new machine falls into the MACRS 7-year class, has an estimated life of 6 years, it costs $30,000, and Elsinore plans to sell the machine at the end of the sixth year for $2000. The new machine is expected to generate sales of $2,000 per year as well as increase costs by $1000 per year. In addition, the company will need to increase inventory by $1000. The company's tax rate is 20 percent. (Numbers in parentheses are negative) What would be the cash flow from assets (CFFA) in year 0 (t=0)? MACRS Class Year 3yr 5yr Tyr 1 33.33% 20.00% 14.29% 2 44.45% 32.00% 24.49% 3 14.81% 19.20% 17.49% 7.41% 11.52% 12.49% 11.52% 8.93% 5.76% 8.92% 8.93% 4.46% 4 5 6 7 ($32,112) ($31,112) ($28,000) ($26,000) ($31,000)

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