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and wo the company is coprudenng eeplacing it. The new miling mochine, ot a cost of $105,000 delvered and installed, would also last for 10

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and wo the company is coprudenng eeplacing it. The new miling mochine, ot a cost of $105,000 delvered and installed, would also last for 10 years and would produce after-tax cash flows (labor sawengs and depreoation tax savings) of \$18,100 per year. It would have zero solvaoe value at the end of its life. The project cest of captal is 12%, and as marginal tax rate is 2596 . NFV: 5 Ghen purchase the new mactine

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