Gator Bicycles just bought a new brake calibration machine that is expected to generate $30,000 in new

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Gator Bicycles just bought a new brake calibration machine that is expected to generate $30,000 in new revenues each of the next four years without increasing cash operating costs. The machine falls in the MACRS 3-year class, and its depreciable basis is $120,000. If Gator’s marginal tax rate is 35 percent, what are the annual supplemental operating cash flows attributed to the machine?

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CFIN

ISBN: 978-1305666870

5th edition

Authors: Scott Besley, Eugene Brigham

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