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Cash flows per year from installing the machinery

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Reference no: EM132029294

For this question, start fresh, do not carry over data from earlier questions. You are analyzing the prospects of installing cost saving machinery. You have the following information:

On a yearly basis the machinery generated a savings of $38,000 which led to an increase in taxes of $4,400. The space used by the machinery was lost, leading to loss of rent (post tax) of $8,000.

What will be the net increase in cash flows per year from installing the machinery?

Reference no: EM132029294

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