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Question 25 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 25 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 6 (t=6)? 3yr 5yr MACRS Class Year 7yr 1 33.33% 20.00% 14.29% 2 44.45% 32.00% 24.49% 3 14.81% 19.20% 17.49% 4 7.41% 11.52% 12.49% 5 11.52% 8.93% 6 5.76% 8.92% 7 8.93% 8 4.46% $4738.60 $3935.20 $5477.20 0 0 0 0 $6338.60 $3931.80

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