How much is annual operating cash flows


A company is considering investing in a piece of machinery costing $400,000. It will provide an additional $142,000 is additional sales each year and its annual operating expenses are expected to be $51,000. The machine will be depreciated on a straight-line basis over an 8-year life with no estimated salvage value. The company has a 40% tax rate. How much is annual operating cash flows?

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Accounting Basics: How much is annual operating cash flows
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