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9 May, 18:21

Julio Company purchased a $200,000 machine that has a four-year life and no salvage value. The company uses straight-line depreciation on all asset acquisitions and is subject to a 30% tax rate. The proper cash flow to show in a discounted-cash-flow analysis as occurring at time 0 would be:

(A) $15,000.

(B) $50,000.

(C) $140,000.

(D) $35,000.

(E) $200,000.

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  1. 9 May, 20:23
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    Answer: The correct answer is " (E) $200,000.".

    The proper cash flow to show in a discounted-cash-flow analysis as occurring at time 0 would be: " (E) $200,000.".

    Explanation: At time 0, the course of time does not occur therefore there is no discount.
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