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A company is considering replacing an existing machine with a more modern one. The tax rate is 4 0 % . Assume straight - line

A company is considering replacing an existing machine with a more modern one. The tax rate is

40 % .

Assume straight

-

line depreciation and a RRR of

10 % .

Assume the salvage value of the investment is equal to zero when calculating the depreciation charge. Find the NPV associated with the project. Please show step by step

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