Compute the company net income

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Problem - Dave's Devilish Dogs (3D) expects to generate $92,000 in sales in the long term. 3D's operating costs, excluding depreciation, are 75 percent of sales. The company has only one asset, a machine that was just purchased for $150,000. The machine will be depreciated according to the MACRS 3-year class of assets. 3D's marginal tax rate is 35 percent, and it has no debt. Compute the company's (a) net income and (b) after-tax operating cash flow for the next four years.

Reference no: EM132698540

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