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2. The ABC company is considering purchasing a machine that costs $280,000 and expected to yield $200,000 per year before taxes. The company has to
2. The ABC company is considering purchasing a machine that costs $280,000 and expected to yield $200,000 per year before taxes. The company has to borrow $80,000 which have to be repaid in two years at j=10%. The cost of operating and maintaining the machine is $40,000 per year. The machine will be needed for two years and can be sold at the end of the second year for $120,000. For depreciation purposes the straight-line depreciation method with no half-year convention applies, Find the missing values in the following tables in order to determine if this was a good investment at MARR of 14%. The company's income tax is 40%. Your decision should be based on the PW criterion NOTE: Determining the missing values (10 volues) In the following table would make you capable of solving the problem, (10 points)
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