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 as a result 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: EM133090171

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