Question: 1 pts Question 30 You are considering two machines, A and B that can be used for the same purpose Machine A costs $250,000, will
1 pts Question 30 You are considering two machines, A and B that can be used for the same purpose Machine A costs $250,000, will reduce costs by $70,000 per year, needs net working capital of $20,000 at time zero which be released at the end of the project, has a 5 year straight line depreciable life and can be sold at the end of the project's life for $50,000. Machine B costs $320,000, will reduce costs by the same $70,000 per year, has net working capital of $40,000 at time zero (also released at the end of its life), has a ten year straight line depreciable life and can be sold at the end of its life for $60,000 Assume that the tax rate is 38% and the discount rate is 10 %. What are the relevant per year operating cash flows associated with machine B for years 1 through 10? $59,800 $57,080 $68,630 $32.000 $55,560
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