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You buy a 2 million dollar building for an 8 year project. You can depreciate it over 20 years. In 8 years, you sell the

You buy a 2 million dollar building for an 8 year project. You can depreciate it over 20 years. In 8 years, you sell the building for 1.7 million dollars.

Over the 8 year project, you project needing net working capital as follows

Years 0, 1, 2, you need 100,000 of capital

Years 3, 4, 5 you need 170,000 of capital

Years 6, 7, 8 you need 175,000 of capital

Because you took this project, you foresee sales increasing by 560,000. Cogs will increase by 200,000. You'll pay 50,000 of interest on the debt for the building. Your tax rate is 25%

Find the cash flow from selling the machine in year 8(10)

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