For the cash flows shown, determine the incremental cash flow between machines B and A for (a) year 0, (b) in year 3, and (c) in year 6. Machine First Cost, $ AOC, S/year Salvage value, $ 3,000 Life, years B. -15,000 -25,000 -1,600 -400 6,000 3 O (a) = -10000 (b) = -1800 (c) 1200 O (a) = -10000 (b) = 13200 (c) = 13200 O (a) = -10000 (b) 13200 (c) -6000 (a) = -10000 (b) = 13200 (c) = 4200

Cornerstones of Financial Accounting
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ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 41E: Determining Cash Flows from Investing Activities Burns Companys 2019 and 2018 balance sheets...
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For the cash flows shown, determine the incremental cash flow between machines B
and A for (a) year 0, (b) in year 3, and (c) in year 6.
Machine
First Cost, $
AOC, S/year
Salvage value, $ 3,000
Life, years
B
-15,000 -25,000
-1,600
-400
6,000
3
O (a) = -10000 (b) = -1800 (c) = 1200
%3D
(a) = -10000 (b) = 13200 (c) = 13200
O (a) = -10000 (b) = 13200 (c) =6000
(a) = -10000 (b) = 13200 (c) = 4200
Transcribed Image Text:For the cash flows shown, determine the incremental cash flow between machines B and A for (a) year 0, (b) in year 3, and (c) in year 6. Machine First Cost, $ AOC, S/year Salvage value, $ 3,000 Life, years B -15,000 -25,000 -1,600 -400 6,000 3 O (a) = -10000 (b) = -1800 (c) = 1200 %3D (a) = -10000 (b) = 13200 (c) = 13200 O (a) = -10000 (b) = 13200 (c) =6000 (a) = -10000 (b) = 13200 (c) = 4200
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