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Capital Budgeting Decision

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Tawanna is considering starting a small business. She plans to purchase equipment costing $145,000. Rent on the building used by the business will be $24,000 per year while other operating costs will total $30,000 per year. A market research specialist estimates that Tawanna's annual sales from the business will amount to $90,000. Tawanna plans to operate the business for 6 years. Disregarding the effects of taxes, what will be the amount of annual net cash flow generated by the business?

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Capital Budgeting Decision

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Capital Budgeting Decision
Tawanna is considering starting a small business. She plans to purchase equipment costing $145,000. Rent on the building used by the ...

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