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You are evaluating a proposed acquisition of a new machine costing $ 5 0 , 0 0 0 . While the machine is expected to
You are evaluating a proposed acquisition of a new machine costing $ While the machine is expected to last for years, it falls into the MACRS year class. Purchase of the machine would require an increase of net operating working capital of $ The machine would increase the firm's revenue by $ per year and its operating costs by $ per year. The firm's marginal tax rate is percent, and the project's cost of capital is percent. What is the operating cash flow in Year MACRS year schedule is as follows: and for years to respectively.
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