Question: You are considering replacing Machine A with Machine B. If you continue operations with machine A, the depreciation expense at t = 3 would be

 You are considering replacing Machine A with Machine B. If you

You are considering replacing Machine A with Machine B. If you continue operations with machine A, the depreciation expense at t = 3 would be 10. If instead you replace A with B, your depreciation expense at t = 3 would be 8. The company's tax rate is 40%. Replacing the machine has no impact on revenue, other operating costs or working capital at t - 3. What is the cash flow impact at t = 3 of replacing Machine A with Machine B? 2 more 2 less 0.8 more 0.8 less 1.2 more 1.2 less Question 18 (1 point) Clients pay your company 20% in cash at the time of sale, 70% cash one year later

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