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Top - Ten Inc. is considering replacing its existing machine that is used to produce musical CDs . This existing machine was purchase 2 years
TopTen Inc. is considering replacing its existing machine that is used to produce musical CDs This existing machine was purchase years ago at a base price of $ Installation costs at the time for the machine were $ The existing machine is considered a year class for MACRS. The existing machine can be sold today for $ and for $ in years. The new machine has a purchase price of $ and is also considered a year class for MACRS. Installation costs for the new machine are $ The estimated salvage value of the new machine in years is $ This new machine is more efficient than the existing one and thus savings before taxes using the new machine are $ a year. The company's marginal tax rate is and the cost of capital is For the new machine project, What is the project incremental recurring Cash Flows RCF in year RCF is also known as operating cash flow or net cash flow
MACRS Fixed Annual Expense Percentages by Recovery Class
Year Year Year Year Year Year
For your answer, round to the nearest dollar, do not enter the $ sign, use commas to separate thousands, use a negative sign in front of first number is the cash flow is negative do not use parenthesis to indicate negative cash flows For example, if your answer is $ then enter ; if your answer is $ then enter
For this project, the incremental recurring cash flow in year is:
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