Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:Gator Bicycles just bought a new brake calibration machine that is expected to generate 124,000 in new revenues each of the next four years without increasing cash operating costs. The machine will be depreciated according to the
MACRS 3-year dass of assets, and its depreciable bass is 196,000. af Gator's marginal tax rate is 35 percent, what are the annual supplemental operating cash flows attributed to the machine? Round your answers to the nearest
dolla
Year Supplemental operating CF
1
2
X
$
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1
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