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what is the bet investment for the project? what are the bet cash flows for year 4? The Space Mountain Company currently has annual cash

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what is the bet investment for the project?
what are the bet cash flows for year 4?
The Space Mountain Company currently has annual cash revenues of $1.6 million and annual cash expenses of $800,000. Depreciation amounts to $180,000 per year. The firm's marginal tax rate is 40 percent. A new high-speed roller coaster costing $1.15 million is being considered as a potential investment. This new piece of equipment will have an estimated usable life of 12 years and $0 estimated salvage value. If the new coaster is bought, Space Mountain's annual revenues are expected to increase to $1.75 million and annual expenses (exclusive of depreciation) will increase to $900,000. Annual depreciation will be $240,000. Assume that no increase in net working capital will be required. What are the Net Cash Flows for Year 4

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