Question: A machine can be purchased for 10 500 including transportation charges
A machine can be purchased for $10,500 including transportation charges, but installation costs will require $1,500 more. The machine is expected to last four years and produce annual cash revenues of $6,000. Annual cash-operating expenses are expected to be $2,000, with depreciation of $3,000 per year. The firm has a 30 percent tax rate. Determine the relevant after-tax cash flows and prepare a cash-flow schedule.
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