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BlZ Corp is considering investing in a new machine that will cost $15,000. The machine will allow the firm to generate sales of $50,000 per

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BlZ Corp is considering investing in a new machine that will cost $15,000. The machine will allow the firm to generate sales of $50,000 per year. The machine has a useful life of three years. Operating expenses are projected to be 70 percent of total sales. Assume straight-line depreciation over three years to a zero- salvage value. The e $5,000 The marginal tax rate of the firm is 35 percent. If the discount rate is 6 percent, should the investment be undertaken? market value of the machine in three years is estimated to b

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