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What are the annual net cash flows

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A new machine costing $100,000 is expected to save the company $15,000 per year for 12 years before depreciation and taxes. The machine will be depreciated on a straight line depreciation basis for a 12 year period to an estimated salvage value of 0.

The marginal tax rate is 40%

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: EM133075780

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