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    Cash flows

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    Sussman Industries purchased drilling machine for $50000 and paid cash.
    Sussman expects to use the machine for ten year after which it will have no value.
    It will be depreciated straight-line over ten years.
    Assume a marginal tax rate of 40%.
    What are the cash flows associated with the machine.

    a. At the time of the purchase?
    b. In each of the following ten years?

    © BrainMass Inc. brainmass.com March 4, 2021, 8:05 pm ad1c9bdddf
    https://brainmass.com/business/statement-of-cash-flows/cash-flows-143452

    Solution Preview

    Sussman Industries purchased drilling machine for $50000 and paid cash.
    Sussman expects to use the machine for ten year after which it will have no value.
    It will be depreciated straight-line ...

    Solution Summary

    This solution assists in determining cash flows.

    $2.49

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