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Net income or net of tax cash flows

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Elena knows that the initial investment for this business will require $120,000. She expects that the facility and equipment will have a ten-year useful life and no salvage value at the end of this ten-year period. Now she needs your help answering some questions.

Should Elena use net income or net of tax cash flows when evaluating whether she should invest in the manufacturing business?

Reference no: EM132419857

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