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Use formulas not excel A company is estimating the cash flows in the final year of a project. It has gathered the following information: Depreciation

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A company is estimating the cash flows in the final year of a project. It has gathered the following information: Depreciation expense for the machine used is $30,000 per year. The book value of the machine used will go to zero at the end of the year. The company finds a buyer willing to pay $50,000 to purchase the machine once the project is stopped. The net working capital balance is $12,000 and will be taken to zero in the last year The incremental earnings generated from the projects are $650,000 The company tax rate is 40% What are the free cash flows for the final year of the project

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