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Business, 18.11.2019 18:31 china236

Pique corporation wants to purchase a new machine for $300,000. management predicts that the machine can produce sales of $200,000 each year for the next 5 years. expenses are expected to include direct materials, direct labor, and factory overhead (excluding depreciation) totaling $80,000 per year. the firm uses straight-line depreciation with no residual value for all depreciable assets. pique's combined income tax rate is 40%. management requires a minimum after-tax rate of return of 10% on all investments. what is the net after-tax cash inflow in year 1 from the investment?

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