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A firm is purchasing equipment costing $ 4 8 5 , 9 0 0 that will lower manufacturing costs by $ 1 3 2 ,
A firm is purchasing equipment costing $ that will lower manufacturing costs by $ per year. The equipment will be depreciated over eight years using straightline depreciation to a book value of zero. After eight years, the equipment will be worthless. The discount rate is percent and the tax rate is percent. What is the annual net income from this purchase?
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