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a company that will buy production equipment that will have an initial cost of $55,000 with no estimated salvage value . The machine is expected
a company that will buy production equipment that will have an initial cost of $55,000 with no estimated salvage value . The machine is expected to generate revenues of $19,000 per year for 6 years and will incur in O&M costs of $1,200 per year for 6 years. The company will use MACRS depreciation and will use a 5-year property life. In addition, the firm will use a 9% interest rate and is taxed at a 34% flat tax rate. Calculate the project's before-tax NPV, after-tax NPV, and the difference between the two npv values
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