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Required information [The following information applies to the questions displayed below.] Project Y requires a $327,000 investment for new machinery with a four-year life
Required information [The following information applies to the questions displayed below.] Project Y requires a $327,000 investment for new machinery with a four-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1 , PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income Project Y $ 355,000 159,040. 81,750 25,000 $ 89,210 Required: 1. Compute Project Y's annual net cash flows.
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