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The Bright Color Company is considering the purchase of a new machine for producing its number one line of crayons. Although the machine being considered
The Bright Color Company is considering the purchase of a new machine for producing its number one line of crayons. Although the machine being considered will not increase sales revenues, it will result in the before-tax reduction of labor costs by $200,000 per year. The machine has a purchase price of $250,000 and it would cost an additional $10,000 for installation. In addition, inventory would need to increase by $15,000. What is the initial cash flow for the project
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