Question: Using the operating cash flow information in Problem 11 determine
Using the operating cash flow information in Problem 11, determine whether Grady Precision Measurement Tools should add the GPS system to its set of products. The initial investment is $1,440,000 and is depreciated over six years (straight-line) and will be sold at the end of five years for $380,000. The cost of capital is 10% and the tax rate is still 35%.
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