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10.9 An asset in the five-year MACRS property class costs $150,000 and has a zero estimated sal- vage value after six years of use. The

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10.9 An asset in the five-year MACRS property class costs $150,000 and has a zero estimated sal- vage value after six years of use. The asset will gen- erate annual revenues of $320,000 and will require $80,000 in annual labor and $50,000 in annual material expenses. There are no other revenues and expenses. Assume a tax rate of 40%. (a) Compute the after-tax cash flows over the pro- ject life. (b) Compute the NPW at MARR = 12%. Is the investment acceptable

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