Calculate the net cash flows for years one-ten

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Problem 1: Diane Manufacturing is considering investing $500,000 in new equipment with an estimated useful life of 10 years and no salvage value. The equipment is expected to produce $320,000 in cash inflows and $200,000 in cash outflows annually. The company uses straight-line depreciation, and has a 30% tax rate. The desired rate of return on this project is 10%. Calculate the Net Present Value. Net cash flows for years 1-10 (99,000 X $1 present annuity factor)

Reference no: EM132950285

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