Show the end of year cash flows for this project

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You purchased a machine for $1,200,000 (installed), and you depreciated it using a 5 year MACRS. In year 3, you sold the machine for $700,000. You financed 70% of the purchase price on a 5 year loan at 8% (note, you must pay the remaining balance of this loan at the end of year 3 from the proceeds of the sale). In addition, you invested $30,000 in working capital initially. Your company is in a 35% tax bracket. Show the end of year cash flows for this project.

Find Year 0,1,2,3

Reference no: EM13839841

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Show the end of year cash flows for this project : You purchased a machine for $1,200,000 (installed), and you depreciated it using a 5 year MACRS. In year 3, you sold the machine for $700,000. You financed 70% of the purchase price on a 5 year loan at 8%. Your company is in a 35% tax bracket. Show t..

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