Ella Inc. is considering purchasing a new milling machine. The new machine costs $298,586, plus...

70.2K

Verified Solution

Question

Finance

Ella Inc. is considering purchasing a new milling machine. The new machine costs $298,586, plus installation fees of $11,693 and will generate revenue of $3,990,261 per year and cost of good sold of $1,001,512 over its 5-year life. The machine will be depreciated on a straight-line basis over its 5-year life to an estimated salvage value of 0. Mystics marginal tax rate is 0%. Mystic will require $33,230 in NWC if the machine is purchased. Determine the annual operating cash flow in if the machine is purchased. round your answer to two decimals

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students