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Determine the annual operating cash flow

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A drill press costs $30,000 and is expected to have a ten-year life. The press will be depreciated on a straight-line basis over ten years to a zero estimated salvage value. This machine is expected to reduce the firm's operating costs by $4,500 per year. If the firm is in the 40% tax bracket, determine the annual operating cash flow generated by the drill press.

Reference no: EM132673496

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