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Archer Chemical Corp. is considering purchasing new equipment that falls under the three-year MACRS category. The cos $200,000. Earnings before depreciation and taxes for the

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Archer Chemical Corp. is considering purchasing new equipment that falls under the three-year MACRS category. The cos $200,000. Earnings before depreciation and taxes for the next four years will be: The firm is in a 25 percent tax bracket and has a 12 percent cost of capital. Should it purchase the new equipment

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