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Remaining Time: 1 hour, 24 minutes, 46 seconds. Question Completion Status: Question 16 1 points Sav You must evaluate a proposal to buy a
Remaining Time: 1 hour, 24 minutes, 46 seconds. Question Completion Status: Question 16 1 points Sav You must evaluate a proposal to buy a new milling machine. The base price is $130,000, and shipping and installation costs would add another $15,500. The machine will be straight line depreciated and it would be sold after 4 years for $55,000. The machine would require a $3,500 increase in net operating working capital in year one (all working capital is recovered in the final year). Revenues from the new machine will be $60,000, the marginal tax rate is 25%, cost of goods sold is 50% of revenues, and the WACC is 11%. Compute the FCF for years 0-4. Type your answer in a legible format. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). P BIU S Paragraph Arial 10pt = = = = X2 X2 AA (1) ? (+ ABC A Tx T 99 0 WORDS POWERED BY
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