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Use the following information for the next THREE parts. Suppose we are considering automating some part of an existing production process. The necessary equipment costs

Use the following information for the next THREE parts.

Suppose we are considering automating some part of an existing production process. The necessary equipment costs $80,000 to buy and install. The automation will save $22,000 per year (before taxes) by reducing labor and material costs. For simplicity, assume that the equipment has a five-year life and is depreciated to zero on a straight-line basis over that period. It will actually be worth $30,000 in five years. Should we automate? The tax rate is 21% and the discount rate is 10%.

A.) Calculate the CFFA in Yr 0.

Group of answer choices

-10000

-80000

-90000

-11000

B.) Calculate the CFFA in Yr 1.

Group of answer choices

20740

20140

21160

19350

23870

24320

C.) Calculate the CFFA in Yr 5.

44440

40910

37550

39640

42320

46290

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