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Megan Co is introducing a new product expected to sell for $20 and to have...

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Accounting

Megan Co is introducing a new product expected to sell for $20 and to have variable costs of $12. Megan expects to sell 30,000 units per year. Making the product requires machinery that cost $600,000 that will last for 10 years. Making the product will increase fixed costs by $50,000 per year in addition to the new depreciation expense on this machine. The tax rate is 30%. The annual after tax cash flow of the project is expected to be:

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