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The xyz company is considering replacing a current drill press with a new computer-operated model. The protected net operating cash flows for both presses for
The xyz company is considering replacing a current drill press with a new computer-operated model. The protected net operating cash flows for both presses for the next 4 years from today are listed below.
Year Current drill press Proposed replacement drill press
1 $100,000 $150,000
2. $125,000 $175,000
3 $150,000 $225,000
4. $195,000 $225,000
the net incremental operating cash flow in the year 4 for this capital budgeting decision is:
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