Question: help!! QUESTION 27 Outback is purchasing a new machine that will cost $90,000. Shipping and installation costs of the machine = $10,000. The machine is
QUESTION 27 Outback is purchasing a new machine that will cost $90,000. Shipping and installation costs of the machine = $10,000. The machine is depreciated using straight line depreciation to a salvage value of $0 over its 5-year useful life. The new machine is expected to generate a revenue of $40,000 each year and operating costs are expected to be $15,000 each year. If the firm's marginal tax rate is 34 percent, what is the net cash flow in the second year? O a. $23,300 O b. $8,300 O c. $105,000 O d. $26,600 C
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