Question: Your cloud computing company is considering an investment into a new set of hardware. A $50 million dollar investment in a new plant would be

Your cloud computing company is considering an investment into a new set of hardware. A $50 million dollar investment in a new plant would be depreciated straight-line over 10 years. You could then produce revenues of $30 million per year for 10 years, your variable costs would be $23 million per year, you face a 21% tax rate, and your discount rate is 10%. What is your annual cash flow?

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