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Title: Jones Crusher Company is evaluating the proposed acquisition of a new machine. The machine will cost ... Post by: queenmeg on Apr 26, 2021 Jones Crusher Company is evaluating the proposed acquisition of a new machine. The machine will cost $190,000, and it will cost another $33,000 to modify it for special use by the firm. The machine falls into the MACRS 3-year class, and it will be sold after 3 years of use for $110,000. The machine will require an increase in net working capital of $9,000 and will have no effect on revenues, but is expected to save the firm $90,000 per year in before-tax operating costs, mainly labour. The company's marginal tax rate is 40%. What are the terminal year cash flows?
MACRS Depreciation Rates
▸ $93,649 ▸ $102,649 ▸ $148,820 ▸ $179,470 ▸ $188,740 Title: Jones Crusher Company is evaluating the proposed acquisition of a new machine. The machine will cost ... Post by: ethom947 on Apr 26, 2021 Content hidden
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