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You must evaluate a proposal to buy a new milling machine. The base price is $110,000, and shipping and installation costs would add another $12,500.

You must evaluate a proposal to buy a new milling machine. The base price is $110,000, and shipping and installation costs would add another $12,500. The machine will be straight line depreciated and it would be sold after 3 years for $55,000. The machine would require a $3,500 increase in net operating working capital (increased inventory less increased accounts payable). Revenues from the new machine will be $50,000 The marginal tax rate is 25%, and the WACC is 11%. Compute the FCF for years 0-3. Type your answer in a legible format.

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