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As an executive for a major telecommunications firm, you are looking at a choice between two capital investments over the next five years. The first
- As an executive for a major telecommunications firm, you are looking at a choice between two capital investments over the next five years. The first is developing new hardware and software for TV Internet access. Although the payoffs are unknown, this option is made more attractive by a 20% U.S. income tax credit. The second option is simply replacing your existing equipment at major telecommunication centers across the United States. How should you factor taxes into weighing these alternatives?
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