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Your firm is considering Investing in a new piece of machinery. This equipment costs $3.100.000 and will depreciated over five seves to a value of

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Your firm is considering Investing in a new piece of machinery. This equipment costs $3.100.000 and will depreciated over five seves to a value of The operating life of the machine is also five years. At the end of the life, you estimate that you will be able to sell the equipment for $375.000 You have discussed the project with marketing and accounting staff and they estimate that sales will be $2.100.000 annually for the five years. The variables costs are 30% of sales, and the bixed costs should be about $570,000 per year. You will also need $1.250.000 in net worting capital to support the operation, The firm's marginal tax rate is 21%, and your requires an 8% return on such Investments, What is the annual operating cash flow that this project will generate over its five-year life - $221.200 5828.000 5841.200 O $1,338.900 $904000 Question 17 DELL

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