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A. A company with a MARR policy of 12% is trying to estimate the initial cost of a piece of machinery that they bought

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A. A company with a MARR policy of 12% is trying to estimate the initial cost of a piece of machinery that they bought several years ago after some of the company's documents were flooded during a storm. The machine is classified as a 10-year MACRS property and has a book value of $126,000 at the end of its 7th year in service. In general, the industry estimates the salvage value of this property as $88,000 after its useful life. What is the initial cost of the equipment using the MACRS depreciation method?

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