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The cost of a press machine (including Shipping and Handling Fees) is $45,000. The useful life of the machine is estimated to have a 8
The cost of a press machine (including Shipping and Handling Fees) is $45,000. The useful life of the machine is estimated to have a 8 year life. The machine will be depreciated on a straight-line basis over 8 years and its salvage value is zero. This machine is expected to reduce the firm's cash operating costs by $5,000 per year. If the firm is in the 25 percent marginal tax bracket, determine the annual net cash flows generated by the press machine. There is no change in working capital and capital expenditure during the life of the machine
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