Develop five year cash flow estimate for the proposal

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Auburn Concrete Inc. is considering the purchase of a new concrete mixer to replace an inefficient older model. If purchased, the new machine will cost $90,000 and is exacted to generate savings of 540.000 per year for five years at the end of which will he sold for $20,000. The mixer will he depreciated to a zero salvage value over three years using the straight line method. Develop a five year cash flow estimate for the proposal. Auburn's marginal tax rate is Work to the nearest thousand dollars.

Reference no: EM131084331

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