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Compute the net investment

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A new machine costing $100,000 is expected to save the McKaig Brick Company $15,000 per year for 12 years before depreciation and taxes. The machine will be depreciated as a seven year class MACRS asset. The firm's marginal tax rate is 40 percent. What are the annual net cash flows associated with the purchase of this machine? Also, compute the Net investment (NINV) for this project

Reference no: EM133068163

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