Determine the annual net cash flows

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Reference no: EM13929475

A lathe costs $30,000 and is expected to have a 7 year life. The lathe will be depreciated straight line over 7 years to an estimated salvage value of $2,000. This machine is expected to reduce the firm’s cash operating costs by $5,500 per year. If the firm is in the 40% marginal tax bracket, determine the annual net cash flows generated by the drill press.

Reference no: EM13929475

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