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Butler Corporation is considering the purchase of new equipment costing $81,000. The projected annual after-tax net income from the equipment is $2900, after deducting $27,000
Butler Corporation is considering the purchase of new equipment costing $81,000. The projected annual after-tax net income from the equipment is $2900, after deducting $27,000 for depreclation. The revenue is to be racelved at the end of each year. The machine has a useful life of 3 years and no salvage value. Butler requires a 10% return on its Investments. The present value of an annuity of $1 for different periods follows: Periods 18% e.9891 1.7355 2.4869 3.1699 4
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