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ABC Ltd is evaluating the purchase of a new machinery with a depreciable base of 100000 expected economic life of 4 years and change in earnings before taxes and depreciation of `45000 in year

ABC Ltd is evaluating the purchase of a new machinery with a depreciable base of `1,00,000; expected economic life of 4 years and change in earnings before taxes and depreciation of `45,000 in year 1, `30,000 in year 2, `25,000 in year 3 and `35,000 in year 4. Assume straight-line depreciation and a 20% tax rate. You are required to COMPUTE relevant cash flows
 

Apr 30 2020 View more View Less

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