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will 2150 The CTR Bothing Company rents a bottling machine for $20,000 per year, including all mainionance expenses. It's considering purchasing a new machine for

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will 2150 The CTR Bothing Company rents a bottling machine for $20,000 per year, including all mainionance expenses. It's considering purchasing a new machine for $50,000. the new machine will require $15,000 per year in maintenance Costs but produce bottling cost savings of $24,000 per year. Also $10,000 will be spent up front (at time of purchase) to train the new Operators Maintenance bottling coses are incurred at the end of each year as is the cost of renting the old machine. Suppose the discount rak= 10% per year and the new machine is purchased today. new machine would last 2 years salvage value = 0 use straight line depreciation marginal corporate tax rate 40% "Whats the Total Cash flow estimate at time zero (today) if the hew machine is pwchased? o whats the total cash flow estimate in yr I it the new machine is purchased? new machine? Whats the net present value of purchasing the

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