What are the annual incremental tax cash flows

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Question - Cash flow for capital budgeting It is used for 4 years.

Investment in machine in year zero for £1,000,000.

The machine can be sold to a buyer for £316,406 at the end of the project.

Capital allowance at 25% p.a. reducing balance allowed.

Corporation tax is 30%.

What are the annual incremental tax cash flows?

Reference no: EM132933524

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