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Your company is considering the purchase of a new machine. After 4 years of operation, you would sell the machine for a salvage value of
Your company is considering the purchase of a new machine. After years of operation, you would sell the machine for a salvage value of $ However, at that time the machine would not have been depreciated to a value of but have a remnant book value of $ The operation of the machine requires additional NOWC of $ which would not change throughout the project. The firm's corporate tax rate is What is the project's Terminal Cash Flow?
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