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(20 points) You purchased a machine, and the Basis was $1,250,000. It is depreciated using MACRS 7-year property class. For year 3 ONLY, you estimate
(20 points) You purchased a machine, and the Basis was $1,250,000. It is depreciated using MACRS 7-year property class. For year 3 ONLY, you estimate the Revenues will be $630,000 and Operating Expenses $145,000. What is the Economic Value Added (EVA) for year 3 ONLY if your effective tax rate is 21% and your After-Tax Marr is 12%. (vou must show your work to get credit)
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