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Business, 18.10.2019 18:30 pierreangie17

Bottoms up diaper service is considering the purchase of a new industrial washer. it can purchase the washer for $3,000 and sell its old washer for $800. the new washer will last for 6 years and save $600 a year in expenses. the opportunity cost of capital is 9%, and the firm’s tax rate is 21%. a. if the firm uses straight-line depreciation over a 6-year life, what are the cash flows of the project in years 0 to 6? the new washer will have zero salvage value after 6 years, and the old washer is fully depreciated.

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