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Chapter 12 3. You have been asked by the president of your company to evaluate the proposed acquisition of a new piece o $30,000 to

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Chapter 12 3. You have been asked by the president of your company to evaluate the proposed acquisition of a new piece o $30,000 to modify it for special use by your firm. The equipment falls into the 45%, 15%, 7%), would be sold after 3 yea increase in net working capital (spare parts) of $8,000. The equipment would have no effect on f equipment for your firm. The equipment's base price is $140,000 and it would cost another MACRS 3-year class (33%, rs for $60,000. The use of this equipment would require an revenues, but it is expected to save the firm$50,000 per year in before-tax operating costs, mainly labor. The firm's marginal federal-plus-state tax rate is 40%, if the firms WACC is 12%, should they purchase the equipment

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