Show the cash flows for each period

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Question: Co Z is considering the purchase of a new machine. The machine will cost $10,000 and will last three years, at which time it will be sold for $1,200. The machine is in the three-year MACRS class (rates .33, .45, .15, .07) and the firm has a 40% tax rate. The machine will require an increase in working capital of $800 and will increase revenues by $4,000 each year. Show the cash flows for each period.

Reference no: EM131956540

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