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Simon Co. is evaluating different equipment. Machine A costs $55,000 per year has a five year...

Simon Co. is evaluating different equipment. Machine A costs $55,000 per year has a five year life, and costs $15,000 pear year to operate. The machine will be depreciated using straight line and the relevant discount rate is 10%. The machine will have a salvage value of $8,500 at the end of the projects life. The firm has a tax rate of 21%.

Calculate the operating cash flow in year 1. (Enter a negative value)

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Operating cash flow in year 1 Cash outflow of a machine - Solvage value ($500) 46,500 (15000) . 3500 - Operating cost p.a Pro

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