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A small - business corporation is considering whether to replace some equipment in the plant. An analysis indicates there are five alternatives in addition to

A small-business corporation is considering whether to replace some equipment in the plant. An analysis indicates there are five alternatives in addition to the do-nothing option, Alt. A. The alternatives have a 5-year useful
59 life with no salvage value. Straight-line depreciation would be used.
The firm has a combined federal and state income tax rate of 26%. If the corporation expects a 8% after-tax rate of return for any new investments, which alternative should be selected?
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