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A company is considering investing in a piece of machinery costing $400,000. It will provide an additional $130,000 is additional sales each year and its
A company is considering investing in a piece of machinery costing $400,000. It will provide an additional $130,000 is additional sales each year and its annual operating expenses are expected to be $30,000. The machine will be depreciated on a straight-line basis over an 8 year life with no estimated salvage value. The company has a 40% tax rate. What is the amount of the depreciation tax shield
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