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The Killington Company is considering the purchase of a $200,000 computer-based inventory management system. It will be depreciated straight-line to zero over its 4 year
The Killington Company is considering the purchase of a $200,000 computer-based inventory management system. It will be depreciated straight-line to zero over its 4 year life. It will be worth $30,000 at the end of its life. The system will save Killington $60,000 before taxes in inventory related costs. The relevant tax rate is 21%. This system will free up $45,000 in net working capital. PRIMARY POST: Question 2 COMPLETE THE FOLLOWING CHART YEAR CASH FLOw Initial Cost 0 2 3 4 Change NWC Operating Cash Flows After-tax Salvage Value CASH FLOW per YEAR
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