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Sussman Industries purchased a drilling machine for $50,000 and paid cash. Sussman expects to use the machine for 10 years after which it will have

Sussman Industries purchased a drilling machine for $50,000 and paid cash. Sussman expects to use the machine for 10 years after which it will have no value. It will be depreciated straight-line over the ten years. Assume a marginal tax rate of 40% What are the cash flows associated with the machine

a. At the time of the purchase?

b. In each of the following ten years?

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