A company is considering the purchase of a new machine

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A company is considering the purchase of a new machine which will cost $100,000. Net cash flow before depreciation and taxes are $25,000 per year for five years. The machine would be depreciated (straight-line method) over five years with no salvage value.

   a) 25,000
       b) 21,000
       c) 28,000
       d) 23,000
       e) none of the above

 

Reference no: EM13723367

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