The Gomez Mustache Wax Company is evaluating the purchase of a new wax-molding machine. The machine costs
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The Gomez Mustache Wax Company is evaluating the purchase of a new wax-molding machine. The machine costs $100,000 and has a useful life of five years. How do the cash flows differ when straight-line is used instead of MACRS depreciation for tax purposes, assuming a tax rate of 40% and no salvage value?
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