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The Munsell Color Company is considering the purchase of a new batch polymer - bonding machine for producing its number one line of crayons. Although
The Munsell Color Company is considering the purchase of a new batch polymerbonding machine for producing its number one line of crayons. Although the machine being considered will not produce any increase in sales revenues, it will result in the beforetax reduction of labor costs by $ per year. The machine has a purchase price of $ and it would cost an additional $ to install the machine. In addition, to operate this machine, inventory must be increased by $ After years, it can be sold for $ The tax rate is What are the terminal year cash flows?
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