Question: Please show all steps!! A company is considering purchasing a machine. The machine will cost $150,000 and have an estimated salvage value of $40,000 at
Please show all steps!!

A company is considering purchasing a machine. The machine will cost $150,000 and have an estimated salvage value of $40,000 at the end of five years. The asset will generate annual before tax revenues of $65,000 over the next five years the asset is depreciated at a CCA rate of 30%. The marginal tax rate is 35% in the firm's market interest rate is known to be 12% all dollar figures represent constant dollars and are responsive to the general inflation rate f a) With f = 5%, compute the after-tax cash flows in actual dollars. b) Suppose the initial cost of the porret will be in financed through a local bank at an interest rate of 10%. With this additional cost, recalculate the after-tax cash flows in the actual dollars. A company is considering purchasing a machine. The machine will cost $150,000 and have an estimated salvage value of $40,000 at the end of five years. The asset will generate annual before tax revenues of $65,000 over the next five years the asset is depreciated at a CCA rate of 30%. The marginal tax rate is 35% in the firm's market interest rate is known to be 12% all dollar figures represent constant dollars and are responsive to the general inflation rate f a) With f = 5%, compute the after-tax cash flows in actual dollars. b) Suppose the initial cost of the porret will be in financed through a local bank at an interest rate of 10%. With this additional cost, recalculate the after-tax cash flows in the actual dollars
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