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Question 40 2.5 pts Elsinore Engineering Company is considering the purchase of a new machine. The new machine falls into the MACRS 3-year class, has

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Question 40 2.5 pts Elsinore Engineering Company is considering the purchase of a new machine. The new machine falls into the MACRS 3-year class, has an estimated life of 5 years, it costs $35,000, and Elsinore plans to sell the machine at the end of the fifth year for $2030. The new machine is expected to generate sales of $3,000 per year as well as providing cost savings of $1000 per year. In addition, the company will need to increase inventory by $1000 and accounts payable will increase by $1000 as well. The company's tax rate is 20 percent. (Numbers in parentheses are negative) What would be the cash flow from assets (CFFA) in year 5 (t=5)? MACRS Class Year 3yr 5yr 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% $4824 $4036 $5636 $3224 $6824

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