Unformatted text preview: no effect on revenues, but it is expected to save the firm $44,000 per year in before-tax operating costs mainly labor. Campbell’s marginal tax rate is 35 percent. a) What is the net cost of the machine for capitol budgeting purposes? (That is what is the year 0 net cash flow?) b) What are the net operating cash flows in years 1, 2, and 3? c) What is the terminal year cash flow?...
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- Spring '11
- Income Statement, Operating cash flow, Generally Accepted Accounting Principles, new milling machine