Question: Your firm needs a computerized machine tool lathe which costs $80,000, will generate $50,000 requires $12,000 in net working capital for the project's life

Your firm needs a computerized machine tool lathe which costs $80,000, will generate $50,000 requires $12,000 in net working capital for the project's life of 5 years. After 5 machine falls into the MACRS 3-year class life category. Assume a tax rate of 30% and a discoun years, this machin What is the initial investment (cash flow) for this project?

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