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Question 3 [2 Marks] A company borrows $10,000 from a bank at 15% interest for a new project. The net income per year is
Question 3 [2 Marks] A company borrows $10,000 from a bank at 15% interest for a new project. The net income per year is $8,000, the salvage value is $5,000, and the project life is 5 years and the tax rate is 40%. Use the Straight line depreciation method. Find the after tax cash flows (CFAT) for years 1-5.
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