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Tomatoes Inc. is plarning a project that involves machinery purchases of $100,000. The new equipment will be depreciated over five years straight-line. It wil resiace
Tomatoes Inc. is plarning a project that involves machinery purchases of $100,000. The new equipment will be depreciated over five years straight-line. It wil resiace wid machinery that will be sold for an estimated $36,000 and has a book value of $16,000. The project will also require hining and training 10 new peopie at a tost of about $12,000 each. All of this must happen before the project is actually started. The firm's marginal tax rate is 40%. Calculate Co, the project's initil cash cutiay 3
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