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Business, 03.08.2019 04:20 roserose3098

Afirm plans to build a plant on land it owns. the firm paid $200,000 for the land 30 years ago. its current market value is $2,000,000. construction costs, including machinery, will require an initial outlay of $20,000,000. the project will create sales of $12,000,000 per year for years 1-10. no change in other operating costs is expected. the firm uses straight line depreciation over the 10 year life of the project. salvage value is $1,000,000. the tax rate is 40%. the incremental operating cash flow in year 5 is $

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Afirm plans to build a plant on land it owns. the firm paid $200,000 for the land 30 years ago. its...
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