What is the project cash flow for the first year

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Reference no: EM131072789

Steamboat Springs Furniture, Inc., is considering purchasing a new finishing lathe that costs $63,101.00. The lathe will generate revenues of $95,995.00 per year for five years. The cost of materials and labor needed to generate these revenues will total $49,235.00 per year, and other cash expenses will be $11,249.00 per year. The machine is expected to sell for $8,717.00 at the end of its five-year life and will be depreciated on a straight-line basis over five years to zero. Steamboat Springs' marginal tax rate is 36.00 percent, and its cost of capital is 14.00 percent. What is the project cash flow for the first year of the project?

Reference no: EM131072789

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What is the project cash flow for the first year : Steamboat Springs Furniture, Inc., is considering purchasing a new finishing lathe that costs $63,101.00. The lathe will generate revenues of $95,995.00 per year for five years. What is the project cash flow for the first year of the project?

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