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A Canadian company is considering the purchase of a $6000 machine for their shop. The machine belongs to an asset Class with d = 0.20.
A Canadian company is considering the purchase of a $6000 machine for their shop. The machine belongs to an asset Class with d = 0.20. The machine is expected to save $2600 per year over its 8-year life, with no scrap value. The company's tax rate is 30% and its after-tax MARR is 10%. What is the after-tax PW of the machine? (Hint: Use CTF to make the problem easier)
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