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The Wall, Co . is considering the purchase of some new machinery. The new machinery costs $ 9 0 , 0 0 0 . The
The Wall, Co is considering the purchase of some new machinery. The new machinery costs $ The machinery falls into the MACRS threeyear class, and it will be sold after three years for $ The depreciation percentages each year are: Year Year Year Year The machinery will require The Wall to increase its working capital by $ which will be recovered at the end of the machinery's life. The machinery has a three year life and will increase The Wall's revenues by $ and costs by $ for each year of the project's three year life. The Wall has a cost of capital and has a tax rate.
What is the initial cash outflow for this project?
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