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As you went over the numbers again, you realized that there was a major error. One of the machines, which were to be shipped over

  1. As you went over the numbers again, you realized that there was a major error. One of the machines, which were to be shipped over to Thailand as part of the MNCs initial investment, had been accounted for at its book value of $500,000. But it had an estimated market value of $700,000. The machine could be depreciated on a straight-line basis over seven years. What effect would this error have on the analysis and recommendation?

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