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Builtriteis considering purchasing a new machine that would cost $60,000 and the machine would be depreciated (straight line) down to $0 over itsfive yearlife.At the

Builtriteis considering purchasing a new machine that would cost $60,000 and the machine would be depreciated (straight line) down to $0 over itsfive yearlife.At the end of fiveyearsit is believed that the machine could be sold for $18,000.The machine would increase EBDT by $42,000 annually.Builtrite'smarginal tax rate is 34%.

What is the TCF associated with the purchase of this machine?

$6,120

$11,880

$0

$9,900

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