Question: do it on paper or word 4. A regional super market chain is deciding whether to install a machine in each of its stores. Each

 do it on paper or word 4. A regional super market
do it on paper or word

4. A regional super market chain is deciding whether to install a machine in each of its stores. Each machine costs $250,000. Projected income per machine is as follows: Figs are all in $ 4 Year Sales Operating Expenses Depreciation Accounting Income 1 250,000 200,000 50,000 0 845352 300,000 200,000 50,000 50,000 3 300,000 200,000 50,000 50,000 250,000 200,000 50,000 0 5 250,000 200,000 50,000 0 a) Why would the store continue to operate a machine in Year 4 and 5 if it produces no profits? b) What are the cash flows for investing in a machine? Assume each machine is completely depreciated and has no salvage value at the end of its 5 years life

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