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a used truck is purchased for $12,000. It is estimated to have a useful life of 5 years, during which MACRS-based depreciation is charged. The

a used truck is purchased for $12,000. It is estimated to have a useful life of 5 years, during which MACRS-based depreciation is charged. The truck is expected to annually save the company $2,000 in material-handling costs. Assuming zero salvage value and a tax rate of 50% is it a good investment? Assume the MARR=12%

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