Gator Bicycles just bought a new brake calibration machine that is expected to generate $36,000 in new revenues each ofthe next four years without increasing cash operating costs. The machine will be depreciated according to the MACRS 3-year class of assets, and its depreciable basis is $144,000. If Gator's marginal tax rate is 35 percent, what are the annualsupplemental operating cash flows attributed to the machine? Round your answers to the nearest dollar.show the Excel formulas and step-by-step processYear Supplemental operating CF1234$$$$

Operating cash flow is that amount which is earned by the investor from his investment. It includes…

Answered: Gator Bicycles just bought a new brake…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter10: Project Cash Flows And Risk

Section: Chapter Questions

Problem 7PROB

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Gator Bicycles just bought a new brake calibration machine that is expected to generate 124,000 in new revenues each of the next four years without increasing cash operating costs. The machine will be depreciated according to the MACRS 3-year dass of assets, and its depreciable bass is 196,000. af Gator's marginal tax rate is 35 percent, what are the annual supplemental operating cash flows attributed to the machine? Round your answers to the nearest dolla Year Supplemental operating CF 1 2 X $ E 1 $
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