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They would like to know the operating cash flows associated with the replacement of the oid riding mower. The following daita are available. 1. There
They would like to know the operating cash flows associated with the replacement of the oid riding mower. The following daita are available. 1. There are 5 years of remaining useful life on the old mower. 2. The old mower has a zero book value. 3. The new mower is expected to last 5 years. 4. The Thomsons will follow a 5 -year MACRS recovery period for the new mower. 5. Depreciable value of the new lawn mower is $1,780. 6. They are subject to a 40% tax rate. 8. The Thomsons will buy a maintenance contract that calls for annual payments of $126. Create an operating cash flow statement for the replacement of Richard and Linda's John Deere riding mower. Show the operating cash flow for the next 6 years. "There percentages heve been reunded to the neaseri whicle percank to simplify calculatiens while retaining realiam. Te cakuitele the exchal depreciatien for tax puipesisa, be sure ko apply the actisl uncunded per conventian
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