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The Kevin Durant Co . is considering the purchase of some new machinery. The new machinery costs $ 1 0 0 , 0 0 0
The Kevin Durant Co is considering the purchase of some new machinery. The new machinery costs $ The machinery will be depreciated on a straightline basis for three years and it will be sold after three years for $ The machinery will require company to increase working capital by $ which will be recovered at the end of the machinery's life. The machinery is not anticipated to increase revenues but it will save the company $ in costs each year of the project's three year life. The company has a cost of capital and has a tax rate.
What is the operating cash flow for this project in year
Multiple Choice
$
$
$
$
What is the intital cash outlay for this project?
Multiple Choice
$
$
$
$
What is the total cash flow of the project in its terminal year?
Multiple Choice
$
$
$
$
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