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As an alternative, you could purchase Model B that costs $600,000, and will be depreciated using four-year, straight-line depreciation. You will have no maintenance cost,
As an alternative, you could purchase "Model B" that costs $600,000, and will be depreciated using four-year, straight-line depreciation. You will have no maintenance cost, and the equipment will be sold for $100,000 at the end of three years. If your effective tax rate is 30%, what is the equivalent annual payment for this machine? Your WACC is 10% on equipment purchases. O 191,294 O 161,526 175,121 O 129,199
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