What is the after-tax operating cash flow

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The company C is considering the acquisition of a new machine that will last for 20 years. The machine costs $500,000 and belongs to CCA class 8 (CCA rate : 20%). The machine would require an investment in net working capital of $25,000 in year 1. The machine will generate annual pre-tax operating revenue of $150,000. The company’s marginal tax is 40%. What is the after-tax operating cash flow for year 2?

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Reference no: EM13766832

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