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A commercial corporation desires an after - tax MARR of 1 0 % . The initial investment in a manufacturing machine is $ 6 0

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A commercial corporation desires an after-tax MARR of 10%. The initial investment in a manufacturing machine is $600,000. The salvage value after 5 years is $50,000. The before tax cash flows for year 1 through five are: 120,000,140,000,160,000,180,000 and 200,000 respectively. The state and federal tax rates are 10% and 21% respectively and Straight Line depreciation method is used. Find out if this investment is desirable for the corporation?
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