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Consider the five items that follow, which are related to independent investment opportunities.
Purchase price of a new machine: $850,000
Annual straight-line depreciation: $75,000
Annual savings in cash operating costs: $120,000
Advertising expenses related to a new marketing campaign in year 2: $35,000
Sale of an asset in year 6: Loss on sale, $60,000; proceeds received by seller, $23,000
Required:
Complete the following table, inserting the (pre-discounted) cash flow amounts that would be used in a net-present-value analysis. Column A should be completed based on the assumption of no income taxes; in contrast, Column B should be completed assuming the relevant company is subject to a 30% income tax rate. Be sure to note cash outflows in parentheses.
Characteristic Personality Traits
Features that are distinctive and describe consistent behaviors in a person across different situations and over time.
Primary Process
In psychoanalytic theory, the unconscious thought processes that are primitive and symbolic, driven by the pleasure principle.
Heredity
The passing on of physical or mental characteristics genetically from one generation to another.
Dominant Source
The primary or most influential point of information or authority within a context or system.
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