What are the annual supplemental operating cash flows

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Question - Last week, E'Fashion purchased a new machine for $280,000; this price included shipping and installation. Although the new machine is forecasted to generate $56,000 in additional revenues each of the next three years, operating expenses, except depreciation, are not expected to change because of the purchase. The machine will be depreciated according to the MACRS 5-year class of assets. If E'Fashion's marginal tax rate is 40 percent, what are the annual supplemental operating cash flows associated with the new machine?

Reference no: EM133079569

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