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City Hospital?, a taxpaying? entity, estimates that it can save $ 23,000 a year in cash operating costs for the next 8 years if it

City Hospital?, a taxpaying? entity, estimates that it can save $ 23,000 a year in cash operating costs for the next 8 years if it buys a? special-purpose eye-testing machine at a cost of $ 90,000. No terminal disposal value is expected. City Hospital's required rate of return is 14?%. Assume all cash flows occur at? year-end except for initial investment amounts. City Hospital uses? straight-line depreciation. The income tax rate is 28 % for all transactions that affect income taxes.

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