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The Smith Sony lon Corporation (SSI) is considering replacing an existing machine with a new one. The existing machine is fully depreciated. The new machine

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The Smith Sony lon Corporation (SSI) is considering replacing an existing machine with a new one. The existing machine is fully depreciated. The new machine has an installed cost of $150,000, and would be depreciated for four years according to the MACRS schedule (depreciation percentages: 33.33% (year 1),44,45% year 2), 14.81% Year 3). 7.41% (year 4)). The new machine is expected to generate additional sales of $200,000 per year and additional cash operating costs of $120,000 per year above and beyond what the existing machine would be expected to generate. The company's earnings are taxed at a 40% marginal rate, What is the incremental after-tax operating cash flow for the third year of this replacement decision? Select one ca. $ 120,000 b. $ 56,886 $ 48,000 d. $ 128,886

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