New Spirit Company plans to install a new production line consisting of several precision machines costing a
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New Spirit Company plans to install a new production line consisting of several precision machines costing a total of $800,000. The installation of these machines requires another $150,000. The products made by the machines are projected to deliver a net income after tax of $400,000 per year for the next 10 years. The useful life of each machine is estimated to be 10 years. At the end of 10 years, these machines have a salvage value of $20,000.
Compute the cash flows generated by this new production line.
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Engineering Management Meeting The Global Challenges
ISBN: 9781498730075,9781498730105
2nd Edition
Authors: C. M. Chang
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