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4. Company wants to buy equipment for $20k Equipment has 7 yr. Economic life Will be depreciated by straight-line method fully Will produce 10k units
4.
Company wants to buy equipment for $20k
Equipment has 7 yr. Economic life
Will be depreciated by straight-line method fully
Will produce 10k units
Unit cost is $3 including labor and priced at $4.5
Discount rate=18%, tax rate= 21%.
Should company buy equipment?
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