Questions 5 A machine purchased for $1,000,000 with a life of 10 years, generates annual revenues of $300,000 and operat

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Questions 5 A Machine Purchased For 1 000 000 With A Life Of 10 Years Generates Annual Revenues Of 300 000 And Operat 1 (15.96 KiB) Viewed 36 times

Questions 5 A machine purchased for $1,000,000 with a life of 10 years, generates annual revenues of $300,000 and operating expenses of $100,000. Assume that machine will be depreciated over 10 years using straight-line depreciation with zero balance at the end of the life. The corporate tax rate is 30%. a) Calculate annual net cash flow of the project b) Calculate project NPV.