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The Marcus Company is evaluating the propose acquisition of a new machine. The machine's base price is $350,000, and it would cost another $125,000 to

The Marcus Company is evaluating the propose acquisition of a new machine. The machine's base price is $350,000, and it would cost another $125,000 to modify it for special use. The machine falls into MARCS 3-year class, and it would be sold after 4 years at $40,000. The machine would require an increase in net working capital of $20,000. The machine would have no effect on the revenues, but is expected to save the fir, $170,000 per year for 4 years in before tax operating cost. The company's marginal tax rate is 30 percent and its cost of capital is 10 percent.

MARCS 3 year class 0.333 0.4445 0.1481 0.0741

What is the non operating terminal cash flow?

What is the NPV

Should the machinery be purchase? why or why not?

Calculate the Net operating cash flow for years 1.2.3 & 4.

I am needing t know how to get started ....

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