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Mystic Beverage Company is considering purchasing a new bottling machine. The new machine costs $165,124, plus...
Mystic Beverage Company is considering purchasing a new bottling machine. The new machine costs $165,124, plus installation fees of $13,539 and will generate earning before interest and taxes of $84,143 per year over its 6-year life. The machine will be depreciated on a straight-line basis over its 6-year life to an estimated salvage value of 0. Mystic’s marginal tax rate is 0%. Mystic will require $27,354 in NWC if the machine is purchased. Determine the annual cash flow in year 3 if the machine is purchased. round your answer to two decimals
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jeff jeffy answered 1 year agoRelated Solutions
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