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Budgeting - Carob Company
Essay specific features
Written by:
Nick B
Date added:
December 25, 2016
Level:
University
Grade:
A
No of pages / words:
4 / 852
Was viewed:
5220 times
Rating of current essay:
Essay content:
The company will sell the four old machines upon the purchase of the new machine.
6. Each shift lasts for 8 hours.
We use differential approach for decision making. We compare (1) the after-tax cash outflows as a result of replacing the old machines with (2) the savings in the future after-tax cash outflows by using the new machine rather than the old machines...
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Net initial investment, which is the cost of the new machine minus the after-tax cash flow from current disposal of the old machines.
2. After-tax cash flow from operation, including the labour cost savings and tax gain from additional depreciation.
3. After-tax cash flow from terminal disposal of the old machines...
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