Question: A company can purchase a new machine for $1,000,000. It will generate OCF of $275,000 per year for the next 5 years. At the end

A company can purchase a new machine for $1,000,000. It will generate OCF of $275,000 per year for the next 5 years. At the end of the 5 years it will be sold for $93,000 and will have book value of $80,000. There are no working capital changes. The corporate tax rate is 25%. What is the CFFA in year 5? $380,000 $368,000 $364,750 $187,000 $275,000

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