Question: Deskmoda Ltd is considering purchasing a new machine that costs 8327268. The machine will be depreciated to 80 using straight line method over a 5year

Deskmoda Ltd is considering purchasing a new machine that costs 8327268. The machine will be depreciated to 80 using straight line method over a 5year life. It will generate net cash owr of $120632 each year. An additional working capital of 850180 is required. This will be recovered at the end of the project life. The equipment will be sold for $8302? at the end of 5 years. The company tax rate is 80% and its cost of capital is 10%. Calculate the free cash ow in year 5. 8.162197 b. 237285 c. 179167 {1.212877

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