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    relevance of the terminal year cash flow

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    Need detailed answers to the following questions.
    I want to be able to understand and learn from each answer.

    1. What is the relevance of the terminal year cash flow? Which factors must be considered when estimating the terminal year cash flow?

    2. After looking at the data provided by Vic, You realize that the revenue and cost figures have not been adjusted for inflation. If inflation was expected to be at least 3% per year, what effect would this have on your analysis? Adjust the data and recalculate the relevant cash flows.

    3. What recommendation would you make to Vic regarding the replacement of the old coating machine? Explain.

    4. If the new machine has an economic life of 15 years while the current machine has a life of only 10 years, how would the capital budgeting analysis have to be adjusted? Please explain by performing the necessary calculations.

    See detailed in formation in attached document.

    Thank you.

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    https://brainmass.com/business/net-present-value/relevance-of-the-terminal-year-cash-flow-46753

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    Need detailed answers to the following questions.
    I want to be able to understand and learn from each answer.

    1. What is the relevance of the terminal year cash flow? Which factors must be considered when estimating the terminal year ...

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    This explains the relevance of the terminal year cash flow

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