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The answer is $7848.80, but I can't figure out how to get it. Bulldog Inc. purchased a leather-cutting machine seven years ago, the cost of

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The answer is $7848.80, but I can't figure out how to get it.
Bulldog Inc. purchased a leather-cutting machine seven years ago, the cost of the machine was $11, 200. It was expected to be used for 10 years the machine has been depreciated on a straight-line basis with an estimated salvage value of $1, 200 The machine can be sold for $3, 500 today. Bulldog is considering the purchase of a new leather-cutting machine to replace the existing machine Having the new machine will result in an increase of revenue of $13,000, but the operating costs will also increase by $6,000 for three years. The new machine costs $14,000, with an expected salvage value of $2,000 at the end of the third year the new machine will be depreciated using the MACRS method, and is considered a three-year property. There will be an increase of $1, 600 in net working capital Gorilla's tax rate is 40%, and cost of capital is 16%. The expected after-tax salvage value of the new machine is $1620. Compute the expected net cash flow at the end of year 3. (You are asked to find CF3 only, not NPV.) Please

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