Determine the annual net cash flows

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Problem - You are considering buying a drill press. The drill press costs $30,000 and is expected to have a 10 year life. The drill press will be depreciated on a straight-line basis over 10 years to a zero estimated salvage value. It is expected to reduce the firm's cash operating costs by $4,500 per year. If the firm's marginal tax rate is 40%, determine the annual net cash flows generated by the drill press.

Reference no: EM132896321

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