New packaging facility in north carolina

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Alcan invested $69 million in a new packaging facility in North Carolina. If the plant is to be depreciated over 10 years with straight line depreciation, sales are to generate $42 million in revenues per year, operating and maintenance costs are $20 million per year, and there is no salvage value, what is the after-tax cash flow (in millions of $) from the year 10 of production for the facility? Assume an effective tax rate of 37%.

Reference no: EM131899598

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