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A company has purchased a machine (CCA rate 26%) at $230,000 and has a tax rate of 39.00%. By how much will the NPV change

  1. A company has purchased a machine (CCA rate 26%) at $230,000 and has a tax rate of 39.00%. By how much will the NPV change if the company is able to obtain a $16,000 salvage value for its machine at the end of the projects life in year 8? Assume a discount rate of 9.80% and that all else remains the same.

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