mloads/6Captal-Budgeting Cash-Flows.pdf 15/28 TOON Example of a New Project Powell Corporation is contemplating the purchase...

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mloads/6Captal-Budgeting Cash-Flows.pdf 15/28 TOON Example of a New Project Powell Corporation is contemplating the purchase of a new machine. The proposed machine's purchase price is $380,000, and an additional $20,000 will be necessary to install it. It will be depreciated using a 4-year recovery period (Straight line method). The change in net working capital is $17,000. The firm can sell the machine at the end of last year for $80,000 (Salvage Value). The book value is $0. The revenue is $400,000 and the expenses are $200,000. The firm pays taxes at a rate of 40%. Calculate the net cash flows 04 DOING MMOBook, DC bockspace + A 9 5 0 6 8 7 9 1 7 8 P T R Y O U Tom enter 4 F G H IS L. shit 1 (and 001 M N B V C 16 / 28 100% Example of a New Find the following: 1. Initial investment 2. Operating cash inflows 3. Terminal cash flow

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