The Leontif Company is evaluating the purchase of a new computer for its marketing department, replacing its
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The Leontif Company is evaluating the purchase of a new computer for its marketing department, replacing its existing computer. The current computer is fully depreciated and has little or no resale value. The new computer would cost $40,000 and would be depreciated for tax purposes as a five-year asset using MACRS. The new computer would not enhance revenues, but would reduce expenses due to increased operating efficiency. It is expected that the computer would be used for four years, at which time it would have a resale value of $1,000.
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Financial Management And Analysis (Frank J. Fabozzi Series)
ISBN: 9780471477617
2nd Edition
Authors: Frank J. Fabozzi, Pamela P. Peterson
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