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Business, 26.11.2019 01:31 kenia41

Crossroad corporation is trying to decide whether to invest to automate a production line. if the project is accepted, labor costs will decrease by $165,000 per year. however, other cash operating expenses will increase by $86,000 per year. the equipment will cost $260,000 and is depreciable over 10 years using simplified straight line to a zero salvage value. crossroad will invest $10,000 in net working capital at installation. the firm has a marginal tax rate of 34%. calculate the firm's annual cash flows associated with the new project.

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