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8 % discount rate, 4 - year lifespan, straight - line depreciation, 2 1 % tax rate. You pay $ 1 0 0 K for
discount rate, year lifespan, straightline depreciation, tax rate.
You pay $K for a machine that reduces costs increasing revenue by $K per year for years. The machine then vanishes without a trace or a haulaway cost
What's th NPV of the decision to buy the machine?
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