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2. You have been asked by the president of Ellis Construction Company, headquartered in Toledo, to evaluate the proposed acquisition of a new earthmover. The

2. You have been asked by the president of Ellis Construction Company, headquartered in Toledo, to evaluate the proposed acquisition of a new earthmover. The movers basic price is $75,000, and it will cost another $15,000 to modify it for special use by Ellis Construction. Assume that the mover falls into the MACRS 3-year class. It will be sold after 3 years for $25,000, and it will require an increase in working capital (spare parts inventory) of $5,000, which will

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