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What is the ocf for year four

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Reference no: EM132761801

Problem 1: Purple Haze Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $509,885 is estimated to result in $206,540 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $91,777. The shop's tax rate is 34 percent. What is the OCF for year 4?

Reference no: EM132761801

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